Dynamic Pricing with Strategic Customers
Zeitschrift für Betriebswirtschaft (ZfB) | Journal of Business Economics (JBE), Volume 83, Issue 5, pp 505-549
37 Pages Posted: 4 Jan 2012 Last revised: 21 Sep 2014
Date Written: September 21, 2012
This paper provides an overview of the literature on dynamic pricing with strategic customers. In the past, research on dynamic pricing was mostly concerned with optimally pricing products over time in a market with myopic customers. In recent years, the consideration of strategic customers, who can delay a purchase to take advantage of a future discount, has dramatically increased. This paper’s main contribution is the development of a comprehensive classification scheme to structure the field of research and, based upon this, a systematic overview of all relevant papers. We then present in detail the various aspects considered in the literature together with their motivation from industry and state the major findings of the most relevant papers. Further attention is given to important problem extensions proposed in the literature that have been considered in only a few papers and are usually motivated by specific practical applications. Finally, promising directions for future research are indicated.
Keywords: Dynamic Pricing, Strategic Customers, Optimization
JEL Classification: M19
Suggested Citation: Suggested Citation