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Author:Skiera, B.
Spann, M.
Title:The ability to compensate for suboptimal capacity decisions by optimal pricing decisions
Journal:European Journal of Operational Research
1999 : NOV, VOL. 118:3, p. 450-463
Index terms:MARKETING
PRICING
CAPACITY
OPERATIONAL RESEARCH
Language:eng
Abstract:Appropriate prices can reduce the adverse effects of non-optimal capacities. The paper analyzes the sensitivity of profit in such situation for a company in a monopolistic market, selling a non-storable product and facing fluctuating but interdependent demand across two time periods which allows to profitably differentiate prices. Therefore optimality conditions for prices in situations of variable and given capacities are stated and a prodecure to determine them is is described.
SCIMA record nr: 196196
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