The first problem considers a stochastic dynamic programming formulation embedded by a negotiation model, which produces a number of interesting analytical and numerical results. As one would expect, the optimal posted price of a negotiating retailer includes a premium on top of the price that a retailer would choose in the take-it-or-leave-it pricing. This price premium helps the retailer extract more revenues from high willingness-to-pay customers, and peaks at moderate inventory levels. In addition, the results show that negotiation acts as a substitute or complement to dynamic pricing.... retailers actively decide whether to use negotiation or posted pricing when selling to the end customers, and different ... to pay more, but this enhanced ability to price discriminate often comes at a cost: The negotiation takes time and effort on the parts of the retailer and customers. ... Customers of Scion, the only division of Toyota that does not allow dealers to bargain, spend 45 minutes to close a deal, anbsp;...
|Title||:||On the Role of Negotiation in Revenue Management and Supply Chain|
|Publisher||:||ProQuest - 2008|