IDEAS home Printed from https://ideas.repec.org/a/eee/ecpeco/v15y1989ip279-284.html
   My bibliography  Save this article

A search model of optimal pricing and production

Author

Listed:
  • Alpern, Steve
  • Snower, Dennis J.

Abstract

This paper presents an overview of the application of the mathematical theory of 'high-low' search to firms' pricing and production decisions. We show how this methodology can be used to determine an optimal sequence of price-quantity decisions by a firm through time. We suppose that the firm chooses a sequence of prices and quantities supplied over time not only with a view to earning current profit (given the current information about the demand curve) but also in order to acquire information about the demand curve by observing its inventory stocks as a result of these price and quantity decisions. We compare and contrast the high-low model with the conventional microeconomic model of pricing and production. We show how the firm uses its pricing and production decisions to partition the uncertainty interval it faces and thereby influence the value of the information which it receives.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Alpern, Steve & Snower, Dennis J., 1989. "A search model of optimal pricing and production," Engineering Costs and Production Economics, Elsevier, vol. 15(1), pages 279-284, May.
    • Handle: RePEc:eee:ecpeco:v:15:y:1989:i::p:279-284
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0167-188X(89)90136-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nicholas C. Petruzzi & Maqbool Dada, 2002. "Dynamic pricing and inventory control with learning," Naval Research Logistics (NRL), John Wiley & Sons, vol. 49(3), pages 303-325, April.
    2. Hassin, Refael & Sarid, Anna, 2018. "Operations research applications of dichotomous search," European Journal of Operational Research, Elsevier, vol. 265(3), pages 795-812.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecpeco:v:15:y:1989:i::p:279-284. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505647 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.