IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2408.12553.html
   My bibliography  Save this paper

Dynamic Pricing for Real Estate

Author

Listed:
  • Lev Razumovskiy
  • Mariya Gerasimova
  • Nikolay Karenin

Abstract

We study a mathematical model for the optimization of the price of real estate (RE). This model can be characterised by a limited amount of goods, fixed sales horizon and presence of intermediate sales and revenue goals. We develop it as an enhancement and upgrade of the model presented by Besbes and Maglaras now also taking into account variable demand, time value of money, and growth of the objective value of Real Estate with the development stage.

Suggested Citation

  • Lev Razumovskiy & Mariya Gerasimova & Nikolay Karenin, 2024. "Dynamic Pricing for Real Estate," Papers 2408.12553, arXiv.org.
    • Handle: RePEc:arx:papers:2408.12553
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2408.12553
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Youyi Feng & Baichun Xiao, 2000. "Optimal Policies of Yield Management with Multiple Predetermined Prices," Operations Research, INFORMS, vol. 48(2), pages 332-343, April.
    2. Youyi Feng & Guillermo Gallego, 1995. "Optimal Starting Times for End-of-Season Sales and Optimal Stopping Times for Promotional Fares," Management Science, INFORMS, vol. 41(8), pages 1371-1391, August.
    3. Guillermo Gallego & Garrett van Ryzin, 1997. "A Multiproduct Dynamic Pricing Problem and Its Applications to Network Yield Management," Operations Research, INFORMS, vol. 45(1), pages 24-41, February.
    4. Youyi Feng & Baichun Xiao, 2000. "A Continuous-Time Yield Management Model with Multiple Prices and Reversible Price Changes," Management Science, INFORMS, vol. 46(5), pages 644-657, May.
    5. Gabriel Bitran & René Caldentey & Susana Mondschein, 1998. "Coordinating Clearance Markdown Sales of Seasonal Products in Retail Chains," Operations Research, INFORMS, vol. 46(5), pages 609-624, October.
    6. Youyi Feng & Guillermo Gallego, 2000. "Perishable Asset Revenue Management with Markovian Time Dependent Demand Intensities," Management Science, INFORMS, vol. 46(7), pages 941-956, July.
    7. Gabriel R. Bitran & Susana V. Mondschein, 1997. "Periodic Pricing of Seasonal Products in Retailing," Management Science, INFORMS, vol. 43(1), pages 64-79, January.
    8. Ming Chen & Zhi-Long Chen, 2015. "Recent Developments in Dynamic Pricing Research: Multiple Products, Competition, and Limited Demand Information," Production and Operations Management, Production and Operations Management Society, vol. 24(5), pages 704-731, May.
    9. Omar Besbes & Costis Maglaras, 2012. "Dynamic Pricing with Financial Milestones: Feedback-Form Policies," Management Science, INFORMS, vol. 58(9), pages 1715-1731, September.
    10. Gabriel Bitran & René Caldentey, 2003. "An Overview of Pricing Models for Revenue Management," Manufacturing & Service Operations Management, INFORMS, vol. 5(3), pages 203-229, August.
    11. Goutam Dutta & Krishnendranath Mitra, 2017. "A literature review on dynamic pricing of electricity," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(10), pages 1131-1145, October.
    12. Wedad Elmaghraby & P{i}nar Keskinocak, 2003. "Dynamic Pricing in the Presence of Inventory Considerations: Research Overview, Current Practices, and Future Directions," Management Science, INFORMS, vol. 49(10), pages 1287-1309, October.
    13. Ahmad Faruqui & Sanem Sergici, 2010. "Household response to dynamic pricing of electricity: a survey of 15 experiments," Journal of Regulatory Economics, Springer, vol. 38(2), pages 193-225, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kyle Y. Lin, 2004. "A sequential dynamic pricing model and its applications," Naval Research Logistics (NRL), John Wiley & Sons, vol. 51(4), pages 501-521, June.
    2. Xuanming Su, 2007. "Intertemporal Pricing with Strategic Customer Behavior," Management Science, INFORMS, vol. 53(5), pages 726-741, May.
    3. Dan Zhang & Larry Weatherford, 2017. "Dynamic Pricing for Network Revenue Management: A New Approach and Application in the Hotel Industry," INFORMS Journal on Computing, INFORMS, vol. 29(1), pages 18-35, February.
    4. Marcus, Benjamin & Anderson, Chris K., 2008. "Revenue management for low-cost providers," European Journal of Operational Research, Elsevier, vol. 188(1), pages 258-272, July.
    5. Ibrahim, Michael Nawar & Atiya, Amir F., 2016. "Analytical solutions to the dynamic pricing problem for time-normalized revenue," European Journal of Operational Research, Elsevier, vol. 254(2), pages 632-643.
    6. Michael N. Katehakis & Yifeng Liu & Jian Yang, 2022. "A revisit to the markup practice of irreversible dynamic pricing," Annals of Operations Research, Springer, vol. 317(1), pages 77-105, October.
    7. Yalç{i}n Akçay & Harihara Prasad Natarajan & Susan H. Xu, 2010. "Joint Dynamic Pricing of Multiple Perishable Products Under Consumer Choice," Management Science, INFORMS, vol. 56(8), pages 1345-1361, August.
    8. Gabriel Bitran & René Caldentey, 2003. "An Overview of Pricing Models for Revenue Management," Manufacturing & Service Operations Management, INFORMS, vol. 5(3), pages 203-229, August.
    9. Dasci, A. & Karakul, M., 2009. "Two-period dynamic versus fixed-ratio pricing in a capacity constrained duopoly," European Journal of Operational Research, Elsevier, vol. 197(3), pages 945-968, September.
    10. Namin, Aidin & Soysal, Gonca P. & Ratchford, Brian T., 2022. "Alleviating demand uncertainty for seasonal goods: An analysis of attribute-based markdown policy for fashion retailers," Journal of Business Research, Elsevier, vol. 145(C), pages 671-681.
    11. Pavithra Harsha & Shivaram Subramanian & Joline Uichanco, 2019. "Dynamic Pricing of Omnichannel Inventories," Service Science, INFORMS, vol. 21(1), pages 47-65, January.
    12. Chew, Ek Peng & Lee, Chulung & Liu, Rujing, 2009. "Joint inventory allocation and pricing decisions for perishable products," International Journal of Production Economics, Elsevier, vol. 120(1), pages 139-150, July.
    13. Peter Seele & Claus Dierksmeier & Reto Hofstetter & Mario D. Schultz, 2021. "Mapping the Ethicality of Algorithmic Pricing: A Review of Dynamic and Personalized Pricing," Journal of Business Ethics, Springer, vol. 170(4), pages 697-719, May.
    14. Netessine, Serguei, 2006. "Dynamic pricing of inventory/capacity with infrequent price changes," European Journal of Operational Research, Elsevier, vol. 174(1), pages 553-580, October.
    15. Ming Chen & Zhi-Long Chen, 2018. "Robust Dynamic Pricing with Two Substitutable Products," Manufacturing & Service Operations Management, INFORMS, vol. 20(2), pages 249-268, May.
    16. Yongbo Xiao & Liming Wang & Jian Chen, 2020. "Dynamic pricing in a trade‐in program with replacement and new customers," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(5), pages 334-352, August.
    17. Yongbo Xiao, 2018. "Dynamic pricing and replenishment: Optimality, bounds, and asymptotics," Naval Research Logistics (NRL), John Wiley & Sons, vol. 65(1), pages 3-25, February.
    18. Lev Razumovskiy & Mariya Gerasimova & Nikolay Karenin & Mikhail Safro, 2024. "Implementing Dynamic Pricing Across Multiple Pricing Groups in Real Estate," Papers 2411.07732, arXiv.org.
    19. Qian Liu & Garrett van Ryzin, 2008. "On the Choice-Based Linear Programming Model for Network Revenue Management," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 288-310, October.
    20. Muzaffer Buyruk & Ertan Güner, 2022. "Personalization in airline revenue management: an overview and future outlook," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 129-139, April.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:arx:papers:2408.12553. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.