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Pricing Strategies for Competing Adaptive Retailers Facing Complex Consumer Behavior: Agent-based Model
International Journal of Information Technology & Decision Making ( IF 4.9 ) Pub Date : 2019-10-07 , DOI: 10.1142/s021962201950038x
Heng Du 1 , Tiaojun Xiao 1
Affiliation  

This paper examines pricing strategies for two adaptive retailers competing on two products in the presence of complex consumer behavior, where consumers own heterogeneous product and store valuations and the number of potential consumers is random. Each retailer can choose one from two pricing strategies: the uniform pricing format (offering the same price for two products) or the differentiated pricing format (offering different prices). Utilizing agent-based model (each retailer is modeled as an autonomous agent with the reinforcement learning behavior), we find that: (i) the differentiated pricing format is not always the optimal choice; (ii) when the uncertainty of one product/store valuation is a little larger than that of the rival, both retailers should adopt uniform pricing. Besides, when wholesale price contract is endogenous, we find that supplier’s pricing behavior can change the impact of the fixed cost on the pricing strategy.

中文翻译:

面对复杂消费者行为的自适应零售商的定价策略:基于代理的模型

本文研究了在存在复杂消费者行为的情况下,两家自适应零售商在两种产品上竞争的定价策略,其中消费者拥有异质的产品和商店估值,潜在消费者的数量是随机的。每个零售商可以从两种定价策略中选择一种:统一定价格式(为两种产品提供相同的价格)或差异化定价格式(提供不同的价格)。利用基于代理的模型(每个零售商都被建模为具有强化学习行为的自治代理),我们发现:(i)差异化定价格式并不总是最佳选择;(ii) 当一种产品/店铺估值的不确定性略大于竞争对手时,两家零售商应采用统一定价。此外,当批发价格契约是内生的时,
更新日期:2019-10-07
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