TY - JOUR
T1 - Selling to strategic consumers
T2 - on the benefits of consumers’ valuation uncertainty and abundant inventory
AU - Hermel, Dror
AU - Mantin, Benny
N1 - Publisher Copyright:
© 2017, Macmillan Publishers Ltd., part of Springer Nature.
PY - 2018/6/15
Y1 - 2018/6/15
N2 - We consider a profit-maximizing seller who encounters consumers over two periods. The consumers face valuation uncertainty in the first period, which is resolved in the second period. We show that when the seller is capacity constrained, then there is a threshold capacity above which the seller prefers facing strategic, rather than myopic, consumers. Accounting for the seller’s stocking decisions, we find that the seller may stock higher levels of inventory when faced with strategic consumers than when faced with myopic consumers.
AB - We consider a profit-maximizing seller who encounters consumers over two periods. The consumers face valuation uncertainty in the first period, which is resolved in the second period. We show that when the seller is capacity constrained, then there is a threshold capacity above which the seller prefers facing strategic, rather than myopic, consumers. Accounting for the seller’s stocking decisions, we find that the seller may stock higher levels of inventory when faced with strategic consumers than when faced with myopic consumers.
KW - dynamic pricing
KW - revenue management
KW - strategic consumers
UR - https://www.scopus.com/pages/publications/85026270310
U2 - 10.1057/s41272-017-0104-2
DO - 10.1057/s41272-017-0104-2
M3 - ???researchoutput.researchoutputtypes.contributiontojournal.article???
AN - SCOPUS:85026270310
SN - 1476-6930
VL - 17
SP - 146
EP - 165
JO - Journal of Revenue and Pricing Management
JF - Journal of Revenue and Pricing Management
IS - 3
ER -