IDEAS home Printed from https://ideas.repec.org/h/spr/lnopch/978-3-031-08623-6_54.html
   My bibliography  Save this book chapter

Stochastic Dynamic Pricing Under Duopoly Competition with Mutual Strategy Adjustments

In: Operations Research Proceedings 2021

Author

Listed:
  • Rainer Schlosser

    (University of Potsdam)

  • Alexander Kastius

    (University of Potsdam)

Abstract

In practical applications, firms use data-driven dynamic pricing strategies to increase their rewards in the presence of competition. Merchants are forced to steadily adjust their strategies in response to changing market environments caused by competitors that update their pricing strategies over time. In this paper, we study mutual updates of dynamic pricing strategies in an infinite horizon duopoly model with stochastic demand. We use dynamic programming techniques to compute strategies that take anticipated price reactions of the competitor into account. We consider cases in which (i) strategies are mutually observable and (ii) have to be identified from single price observations over time. For both scenarios, we analyze and compare the long-term interaction of competing self-adaptive strategies.

Suggested Citation

  • Rainer Schlosser & Alexander Kastius, 2022. "Stochastic Dynamic Pricing Under Duopoly Competition with Mutual Strategy Adjustments," Lecture Notes in Operations Research, in: Norbert Trautmann & Mario Gnägi (ed.), Operations Research Proceedings 2021, pages 367-372, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-08623-6_54
    DOI: 10.1007/978-3-031-08623-6_54
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:lnopch:978-3-031-08623-6_54. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.