Title :
General service pricing strategies research based on dynamic stochastic wealth model
Author :
Cai, Yongming ; Chen, Wei
Author_Institution :
Sch. of Manage., Univ. of Jinan, Jinan
fDate :
June 30 2008-July 2 2008
Abstract :
The authors investigate cobweb type service price fluctuations and adaptive learning, and put forward a dynamic service pricing method based on the dynamic stochastic wealth model (DSWM). In this model, authors treat the service market as an expectation feedback system, where the current market equilibrium price of service determined by aggregated individual service providerpsilas expectations of next periodpsilas yield. After several rounds of price adjustment, optimal pricing strategies can be conducted. In order to describe the fluctuations of price in future, authors also developed a set of market impact functions with the technique of dynamic harmonic regression modification to simulate the market impact.
Keywords :
pricing; regression analysis; stochastic processes; adaptive learning; cobweb type service price fluctuations; dynamic harmonic regression modification; dynamic service pricing method; dynamic stochastic wealth model; expectation feedback system; general service pricing strategies; market equilibrium price; optimal pricing strategies; price adjustment; service market; Customer relationship management; Customer satisfaction; Feedback; Fluctuations; Forward contracts; Pricing; Quality of service; Stochastic processes; Stochastic systems; System testing; dynamic harmonic regression modification; dynamic stochastic wealth model; expectation feedback system; multilevel stochastic dynamic process simulation; service pricing;
Conference_Titel :
Service Systems and Service Management, 2008 International Conference on
Conference_Location :
Melbourne, VIC
Print_ISBN :
978-1-4244-1671-4
Electronic_ISBN :
978-1-4244-1672-1
DOI :
10.1109/ICSSSM.2008.4598513
