Optimal Dynamic Pricing of Perishable Products with Reference Price Effect

摘要

This paper studies a two-stage dynamic pricing model with customers' strategic behavior and reference price effect. We used Stachelberg game theory and analyzed the decision-making of a monopolistic firm and its customers. Finally, we get the optimal pricing strategy for the firm in the market. What's more, the numerical analysis shows that the total profit is decreasing with the increase of the strategic customers' proportion. It also indicates that the optimal prices are increasing with the increase of the customers' memory coefficient. Results in this paper will give us some management implications.