By using our site, you agree to our collection of information through the use of cookies. To learn more, view our Privacy Policy. To browse Academia. The paper provides an overview of various models and approaches for enhancing financial decision-making through optimization techniques, while cautioning against the risks of misuse in practical applications.
Additionally, it discusses stochastic models in retail pricing, optimization strategies in refinery scheduling, and sensor management issues as multi-armed bandit problems, showcasing real-world applications and managerial insights. Problem statement: We consider a monopolist who manipulates the market by artificially creating shortages that result in an increase in current price that, in turn, boosts demand for the product in subsequent periods.
The approach is to develop an intertemporal model of pricing strategy for a monopolist. Approach: The postulated pricing strategy creates an incentive for producers to reduce current supply and raise current prices and sacrifice current profits in order to increase future profits. The main problem is to explain the precise mathematical conditions under which the pricing strategy will be chosen by a monopolist. Results: We derive the optimal pricing strategy to argue that the monopolist has an incentive to adopt simple market manipulation that calls forth a close examination of issues concerning deregulation.
Conclusion: The paper examines two possible strategies for a typical monopolist-strategic pricing visa -vis a myopic pricing. The intuition is that the monopolist can manipulate the market by artificially creating shortages that result in an increase in current price that, in turn, boosts demand for the product in subsequent periods.
Income management has recently become a desirable service in many circumstances. Decision makers recognize that even small developments in their operations can have a notable effect on their benefits. Nonetheless, the specification of pricing and optimal inventory policies in more practical situations may not be a manageable task. Eventually, competitors influence a supplier's best strategy by affecting their demand, incomes, and other related actions. This paper considers a continual time optimal control model for the learning of a dynamic pricing and inventory control problem in a make-to-stock system.
