Dynamic Marketing Model: The Case of Piece-Wise Constant Pricing

Результат исследования: Публикации в книгах, отчётах, сборниках, трудах конференцийстатья в сборнике материалов конференциинаучнаярецензирование

Аннотация

We study a stylized vertical distribution channel where a representative manufacturer sells a single kind of good to a representative retailer. The control of the manufacturer is the price discounts, while the control of the retailer is pass-through. In the classical setting, the arising problem is quadratic with respect to wholesale price discount and pass-through. Thus, the optimal sale price is continuous. It seems elegant mathematically but not adequate economically. Therefore we assume that the controls are constant or piece-wise constant. This way, the optimal control problem reduces to the mathematical programming problem where the profit of the manufacturer is quadratic with respect to price discount level(s), while the profit of the retailer is quadratic with respect to pass-through level(s). We study the concavity property of the profits. This allows getting the optimal behavior strategies of the manufacturer and the retailer.

Язык оригиналаанглийский
Название основной публикацииOptimization and Applications - 10th International Conference, OPTIMA 2019, Revised Selected Papers
РедакторыMilojica Jaćimović, Michael Khachay, Vlasta Malkova, Mikhail Posypkin
ИздательSpringer Gabler
Страницы150-163
Число страниц14
ISBN (печатное издание)9783030386023
DOI
СостояниеОпубликовано - 1 янв 2020
Событие10th International Conference on Optimization and Applications, OPTIMA 2019 - Petrovac, Черногория
Продолжительность: 30 сен 20194 окт 2019

Серия публикаций

НазваниеCommunications in Computer and Information Science
Том1145 CCIS
ISSN (печатное издание)1865-0929
ISSN (электронное издание)1865-0937

Конференция

Конференция10th International Conference on Optimization and Applications, OPTIMA 2019
СтранаЧерногория
ГородPetrovac
Период30.09.201904.10.2019

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