| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1142763 | Operations Research Letters | 2009 | 5 Pages |
Abstract
We study a two-period intertemporal pricing game in a single-server service system with forward-looking strategic customers who make their purchase decision based on current information and anticipated future gains. Subgame perfect Nash equilibrium (SPNE) prices are derived. A comparison between revenue-maximizing equilibrium prices and welfare-maximizing equilibrium prices is conducted and the impact on the system’s performance of misunderstanding customers’ type is evaluated.
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Pengfei Guo, John J. Liu, Yulan Wang,