Dynamic Pricing with Variable Order Sizes

Nyles Breecher
University of Wisconsin-Milwaukee
PhD Graduate Student – Dissertator 

“Dynamic Pricing is the practice of adjusting prices based on market conditions in order to maximize profit. One example is airline pricing, where prices are frequently updated based on factors like how many tickets left and how much time is left until a flight. We investigate a dynamic pricing model under a constant demand elasticity assumption. Our model introduces the feature of customers ordering multiple items at once. Analytic solutions for the optimal pricing strategies are found, and interesting comparison results are shown. Model variations like advertising are also considered.”

Committee Members:
Profs. Richard Stockbridge (Advisor); Jay Beder, Istvan Lauko, Gabriella Pinter & Chao Zhu