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A flexible model for the pricing of perishable assets

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  • Banerjee, Pradeep K.
  • Turner, T. Rolf

Abstract

We present a flexible and versatile model which addresses the problem of assigning optimal prices to assets whose value becomes zero after a fixed expiry date. (Such assets include the important example of seats on airline flights.) Our model is broad in scope, in particular encompassing the ability to deal with arrivals of customers in groups. It is highly adaptable and can be adjusted to deal with a very extensive set of circumstances.

Suggested Citation

  • Banerjee, Pradeep K. & Turner, T. Rolf, 2012. "A flexible model for the pricing of perishable assets," Omega, Elsevier, vol. 40(5), pages 533-540.
    • Handle: RePEc:eee:jomega:v:40:y:2012:i:5:p:533-540
    DOI: 10.1016/j.omega.2011.10.001
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    Cited by:

    1. Turner, Rolf & Banerjee, Pradeep & Shahlori, Rayomand, 2014. "Optimal Asset Pricing," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 58(i11).
    2. Nur Ayvaz Çavdaroğlu, 2020. "Joint Pricing and Ordering Problem with Charitable Donations," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    3. Shah, Nita H & Soni, Hardik N & Patel, Kamlesh A, 2013. "Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates," Omega, Elsevier, vol. 41(2), pages 421-430.
    4. Guowei Liu & Jianxiong Zhang & Wansheng Tang, 2015. "Joint dynamic pricing and investment strategy for perishable foods with price-quality dependent demand," Annals of Operations Research, Springer, vol. 226(1), pages 397-416, March.
    5. Rana, Rupal & Oliveira, Fernando S., 2014. "Real-time dynamic pricing in a non-stationary environment using model-free reinforcement learning," Omega, Elsevier, vol. 47(C), pages 116-126.
    6. Wang, Xiaojun & Li, Dong, 2012. "A dynamic product quality evaluation based pricing model for perishable food supply chains," Omega, Elsevier, vol. 40(6), pages 906-917.
    7. Zhang, Jianxiong & Liu, Guowei & Zhang, Qiao & Bai, Zhenyu, 2015. "Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract," Omega, Elsevier, vol. 56(C), pages 37-49.
    8. Basu, Sumanta & Chakraborty, Soumyakanti & Sharma, Megha, 2015. "Pricing cloud services—the impact of broadband quality," Omega, Elsevier, vol. 50(C), pages 96-114.

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