E-Commerce for Revenue Management Based on Incentive Compatible Online Auctions

We formally embed a new-style of E-commerce into a dynamic framework that is typical of the revenue management problem. Full characterize classical results of incentive compatible online auctions. The main focus of this paper is joint inventory control and pricing problem of revenue management in which buyers act strategically and bid for units of a firm´s fixed product online. Faced by a sequence of buyers separated into T time periods, and each group of buyers has independent, private values, a sequence of standard multi-unit multi-period and multi-demand dynamic model for finite time is proposed. In order to achieve the maximum expect revenue in reasonable range, the optimal allocation q*j(v)based on dynamic program is analyzed, and considering of running an appropriately mechanism based on incentive compatible online auctions with a dynamic thresholds price in each period. Using this dynamic auction model to realize pricing and inventory control in single-leg, multi-period revenue management problem.