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Dynamic Marketing Model : The Case of Piece-Wise Constant Pricing. / Bykadorov, Igor.

Optimization and Applications - 10th International Conference, OPTIMA 2019, Revised Selected Papers. ed. / Milojica Jaćimović; Michael Khachay; Vlasta Malkova; Mikhail Posypkin. Springer Gabler, 2020. p. 150-163 (Communications in Computer and Information Science; Vol. 1145 CCIS).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review

Harvard

Bykadorov, I 2020, Dynamic Marketing Model: The Case of Piece-Wise Constant Pricing. in M Jaćimović, M Khachay, V Malkova & M Posypkin (eds), Optimization and Applications - 10th International Conference, OPTIMA 2019, Revised Selected Papers. Communications in Computer and Information Science, vol. 1145 CCIS, Springer Gabler, pp. 150-163, 10th International Conference on Optimization and Applications, OPTIMA 2019, Petrovac, Montenegro, 30.09.2019. https://doi.org/10.1007/978-3-030-38603-0_12

APA

Bykadorov, I. (2020). Dynamic Marketing Model: The Case of Piece-Wise Constant Pricing. In M. Jaćimović, M. Khachay, V. Malkova, & M. Posypkin (Eds.), Optimization and Applications - 10th International Conference, OPTIMA 2019, Revised Selected Papers (pp. 150-163). (Communications in Computer and Information Science; Vol. 1145 CCIS). Springer Gabler. https://doi.org/10.1007/978-3-030-38603-0_12

Vancouver

Bykadorov I. Dynamic Marketing Model: The Case of Piece-Wise Constant Pricing. In Jaćimović M, Khachay M, Malkova V, Posypkin M, editors, Optimization and Applications - 10th International Conference, OPTIMA 2019, Revised Selected Papers. Springer Gabler. 2020. p. 150-163. (Communications in Computer and Information Science). doi: 10.1007/978-3-030-38603-0_12

Author

Bykadorov, Igor. / Dynamic Marketing Model : The Case of Piece-Wise Constant Pricing. Optimization and Applications - 10th International Conference, OPTIMA 2019, Revised Selected Papers. editor / Milojica Jaćimović ; Michael Khachay ; Vlasta Malkova ; Mikhail Posypkin. Springer Gabler, 2020. pp. 150-163 (Communications in Computer and Information Science).

BibTeX

@inproceedings{efb27bad12384e1d9002ca4d0b916405,

title = "Dynamic Marketing Model: The Case of Piece-Wise Constant Pricing",

abstract = "We study a stylized vertical distribution channel where a representative manufacturer sells a single kind of good to a representative retailer. The control of the manufacturer is the price discounts, while the control of the retailer is pass-through. In the classical setting, the arising problem is quadratic with respect to wholesale price discount and pass-through. Thus, the optimal sale price is continuous. It seems elegant mathematically but not adequate economically. Therefore we assume that the controls are constant or piece-wise constant. This way, the optimal control problem reduces to the mathematical programming problem where the profit of the manufacturer is quadratic with respect to price discount level(s), while the profit of the retailer is quadratic with respect to pass-through level(s). We study the concavity property of the profits. This allows getting the optimal behavior strategies of the manufacturer and the retailer.",

keywords = "Concavity, Piece-wise constant pricing, Retailer, Sale motivation",

author = "Igor Bykadorov",

note = "Publisher Copyright: {\textcopyright} Springer Nature Switzerland AG 2020. Copyright: Copyright 2020 Elsevier B.V., All rights reserved.; 10th International Conference on Optimization and Applications, OPTIMA 2019 ; Conference date: 30-09-2019 Through 04-10-2019",

year = "2020",

month = jan,

day = "1",

doi = "10.1007/978-3-030-38603-0_12",

language = "English",

isbn = "9783030386023",

series = "Communications in Computer and Information Science",

publisher = "Springer Gabler",

pages = "150--163",

editor = "Milojica Ja{\'c}imovi{\'c} and Michael Khachay and Vlasta Malkova and Mikhail Posypkin",

booktitle = "Optimization and Applications - 10th International Conference, OPTIMA 2019, Revised Selected Papers",

address = "Germany",

}

RIS

TY - GEN

T1 - Dynamic Marketing Model

T2 - 10th International Conference on Optimization and Applications, OPTIMA 2019

AU - Bykadorov, Igor

PY - 2020/1/1

Y1 - 2020/1/1

N2 - We study a stylized vertical distribution channel where a representative manufacturer sells a single kind of good to a representative retailer. The control of the manufacturer is the price discounts, while the control of the retailer is pass-through. In the classical setting, the arising problem is quadratic with respect to wholesale price discount and pass-through. Thus, the optimal sale price is continuous. It seems elegant mathematically but not adequate economically. Therefore we assume that the controls are constant or piece-wise constant. This way, the optimal control problem reduces to the mathematical programming problem where the profit of the manufacturer is quadratic with respect to price discount level(s), while the profit of the retailer is quadratic with respect to pass-through level(s). We study the concavity property of the profits. This allows getting the optimal behavior strategies of the manufacturer and the retailer.

AB - We study a stylized vertical distribution channel where a representative manufacturer sells a single kind of good to a representative retailer. The control of the manufacturer is the price discounts, while the control of the retailer is pass-through. In the classical setting, the arising problem is quadratic with respect to wholesale price discount and pass-through. Thus, the optimal sale price is continuous. It seems elegant mathematically but not adequate economically. Therefore we assume that the controls are constant or piece-wise constant. This way, the optimal control problem reduces to the mathematical programming problem where the profit of the manufacturer is quadratic with respect to price discount level(s), while the profit of the retailer is quadratic with respect to pass-through level(s). We study the concavity property of the profits. This allows getting the optimal behavior strategies of the manufacturer and the retailer.

KW - Concavity

KW - Piece-wise constant pricing

KW - Retailer

KW - Sale motivation

UR - http://www.scopus.com/inward/record.url?scp=85078452225&partnerID=8YFLogxK

U2 - 10.1007/978-3-030-38603-0_12

DO - 10.1007/978-3-030-38603-0_12

M3 - Conference contribution

AN - SCOPUS:85078452225

SN - 9783030386023

T3 - Communications in Computer and Information Science

SP - 150

EP - 163

BT - Optimization and Applications - 10th International Conference, OPTIMA 2019, Revised Selected Papers

A2 - Jaćimović, Milojica

A2 - Khachay, Michael

A2 - Malkova, Vlasta

A2 - Posypkin, Mikhail

PB - Springer Gabler

Y2 - 30 September 2019 through 4 October 2019

ER -

ID: 23256799