On the Relationship Between Pricing and Capacity Decisions in Inventory Systems With Stochastic Demand
- Topics:
- Inventory Management,
- Pricing Strategy
- Tags:
- Columbia University,
- Finance,
- Investment,
- Marketing,
- Marketing Research,
- Pricing,
- Pricing Strategy
- Source:
- Columbia University
FREE Registration is required
Overview: The authors address the simultaneous determination of pricing and capacity investment strategies in a multi-period setting under demand uncertainty. In their model a monopolistic firm makes three decisions: capacity investment (or disinvestment), production (inventory), and price, all of which can be specified dynamically as a function of the state of the system. The authors analyze the optimal joint strategy and investigate the relationships between the main strategic decision variables: price and capacity.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 214KB | Date: Dec 2005 | Pages: 27




