DocumentCode :
3587856
Title :
Competitive dynamic pricing under demand uncertainty
Author :
Yixuan Zhai ; Qing Zhao
Author_Institution :
Dept. of Electr. & Comput. Eng., Univ. of California, Davis, Davis, CA, USA
fYear :
2014
Firstpage :
1098
Lastpage :
1101
Abstract :
We consider a multi-seller dynamic pricing problem with unknown demand models. In this problem, each seller offers prices sequentially to a stream of potential customers. Each customer considers only the lowest price among all sellers, and the probability of making a purchase is governed by an unknown demand model that can take a finite number of possible forms. The problem is formulated as a repeated game with incomplete information. We develop a dynamic pricing strategy that leads to an efficient subgame perfect equilibrium and offers a finite regret with respect to the ideal case of a known demand model.
Keywords :
game theory; pricing; competitive dynamic pricing strategy; demand uncertainty; finite possible forms; finite regret; incomplete information; known demand model; multiseller dynamic pricing problem; purchase making probability; repeated game; subgame perfect equilibrium; unknown demand models; Economics; Games; History; Nash equilibrium; Numerical models; Pricing; Uncertainty; Dynamic pricing; regret; repeated game; subgame perfect Nash equilibrium;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Signals, Systems and Computers, 2014 48th Asilomar Conference on
Print_ISBN :
978-1-4799-8295-0
Type :
conf
DOI :
10.1109/ACSSC.2014.7094626
Filename :
7094626
Link To Document :
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