Pricing in revenue management for multiple firms competing for customers

被引:56
作者
Dai, Y [1 ]
Chao, XL
Fang, SC
Nuttle, HLW
机构
[1] Fudan Univ, Sch Management, Shanghai 200433, Peoples R China
[2] N Carolina State Univ, Raleigh, NC 27695 USA
基金
中国国家自然科学基金; 美国国家科学基金会;
关键词
pricing; revenue management; game theory; Nash equilibrium;
D O I
10.1016/j.ijpe.2004.06.056
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
We consider the pricing strategies of multiple firms providing the same service in competition for a common pool of customers in a revenue management context. The firms have finite capacity and the demand at each firm depends on the selling prices charged by all firms, each of which satisfies demand up to a given capacity limit. We use game theory to analyze the systems when firms face either a deterministic demand or a general stochastic demand. The existence and uniqueness conditions of a Nash equilibrium are derived, and we calculate the explicit Nash equilibrium point when the demand at each firm is a linear function of price. We also conduct sensitivity analysis of the equilibrium prices with respect to cost and capacity parameters. (c) 2004 Elsevier B.V. All rights reserved.
引用
收藏
页码:1 / 16
页数:16
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