Pricing Strategy of Service Provider Under Buyer-Driven Pricing Model

In the traditional business model, the trade elements, such as the price, package and the service, are determined by the seller, and the customer will buy if suitable. While the price is given by the buyers in buyer-driven pricing mode and the trade will realize when both agree. This paper introduces the buyer-driven pricing model into the revenue management, and a two-period pricing model is established. The results illustrate that customer heterogeneity affects the optimal inter-temporal pricing strategy and a numerical example is given.