IDEAS home Printed from https://ideas.repec.org/a/hin/jnlmpe/2073585.html
   My bibliography  Save this article

Dynamic Pricing in Cloud Manufacturing Systems under Combined Effects of Consumer Structure, Negotiation, and Demand

Author

Listed:
  • Wei Peng
  • Wei Guo
  • Lei Wang
  • Ruo-Yu Liang

Abstract

In this study, we proposed a game-theory based framework to model the dynamic pricing process in the cloud manufacturing (CMfg) system. We considered a service provider (SP), a broker agent (BA), and a dynamic service demander (SD) population that is composed of price takers and bargainers in this study. The pricing processes under linear demand and constant elasticity demand were modeled, respectively. The combined effects of SD population structure, negotiation, and demand forms on the SP’s and the BA’s equilibrium prices and expected revenues were examined. We found that the SP’s optimal wholesale price, the BA’s optimal reservation price, and posted price all increase with the proportion of price takers under linear demand but decrease with it under constant elasticity demand. We also found that the BA’s optimal reservation price increases with bargainers’ power no matter under what kind of demand. Through analyzing the participants’ revenues, we showed that a dynamic SD population with a high ratio of price takers would benefit the SP and the BA.

Suggested Citation

  • Wei Peng & Wei Guo & Lei Wang & Ruo-Yu Liang, 2017. "Dynamic Pricing in Cloud Manufacturing Systems under Combined Effects of Consumer Structure, Negotiation, and Demand," Mathematical Problems in Engineering, Hindawi, vol. 2017, pages 1-15, February.
    • Handle: RePEc:hin:jnlmpe:2073585
    DOI: 10.1155/2017/2073585
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/MPE/2017/2073585.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/MPE/2017/2073585.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2017/2073585?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:hin:jnlmpe:2073585. 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: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    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.