Yolande Strengers · Palgrave Macmillan UK eBooks · 2013
The success story of dynamic or variable pricing is told by economists. Evidence from 30 years of sustained economic research demonstrates substantial and sustained reductions in household electricity demand during peak times — between 13 and 20 per cent for critical peak pricing (CPP) — or much more (27–44 per cent) when combined with energy feedback and ‘enabling’ technologies such as smart thermostats (Faruqui & Sergici 2010). These broad-brush statistics mask the ways in which dynamic pricing intersects with everyday routines and what becomes malleable and adaptable as a result. Analysed almost solely in terms of householders’ price responsiveness, electricity consumption is positioned as relatively inelastic, inflexible and non-negotiable unless ‘the price is right’. However, this position is continually confounded by the finding that the seemingly non-negotiable practice of air-conditioned cooling is increasingly negotiable with hotter temperatures and where more consumers own these devices (eMeter 2010; Faruqui & George 2005).
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David Müller · Mathematische Optimierung und Wirtschaftsmathematik · 2024
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Sulistyanto, Andri · OSF Preprints (OSF Preprints) · 2019
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P. B. Seethu Seetharaman · Edward Elgar Publishing eBooks · 2009
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Andri Sulistyanto · OSF Preprints (OSF Preprints) · 2019
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2005
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Ilia Krasikov, Rohit Lamba · American Economic Journal Microeconomics · 2026
This paper builds a theory of dynamic pricing for the sale of timed goods. The main friction is private and evolving valuation of the buyer prior to the date of consumption, which follows a Poisson process. A combination of membership fees and continuously increasing prices induces a threshold response from the buyer, endogenously segmenting the market along timing of purchase. This pricing mechanism achieves the deterministic global optimum. The tools developed here are shown to be useful in thinking about global incentives in dynamic mechanisms, and mapping dynamic pricing to the classic taxonomy of consumer-producer surplus and deadweight loss. (JEL D21, D82, D86)
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Grafton, Quentin, Chu, Long, Wyrwoll, Paul · ANU Open Research (Australian National University) · 2020
Water insecurity poses threats to both human welfare and ecological systems. Global water abstractions (extractions) have increased threefold over the period 1960–2010, and an increasing trend in abstractions is expected to continue. Rising water use is placing significant pressure on water resources, leading to depletion of surface and underground water systems, and exposing up to 4 billion people to high levels of seasonal or persistent water insecurity. Climate change is deepening the risks of water scarcity by increasing rainfall variability. By the 2050s, the water–climate change challenge could cause an additional 620 million people to live with chronic water shortage and increase by 75% the proportion of cropland exposed to drought. While there is no single solution to water scarcity or water justice, increasing the benefits of water use through better planning and incentives can help. \n \nPricing is an effective tool to regulate water consumption for irrigation, for residential uses, and especially in response to droughts. For a water allocation to be efficient, the water price paid by users should be equal to the marginal economic cost of water supply. Accounting for all costs of supply is important even though, in practice, water prices are typically set to meet a range of social and political objectives. \n \nDynamic water pricing provides a tool for increasing allocative efficiency in short-term water allocation and the long-term planning of water resources. A dynamic relationship exists between water consumption at a point in time and water scarcity in the future. Thus, dynamic water pricing schemes may take into account the benefit of consuming water at that time and also the water availability that could be used should a drought occur in the future. Dynamic water pricing can be applied with the risk-adjusted user cost (RAUC), which measures the risk impact of current water consumption on the welfare of future water users.
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Lei Xu, Chunxiao Jiang, Yi Qian et al. · 2018
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William A. Brock, W. Davis Dechert · International Economic Review · 1985
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Richard Willson, Aiden Irish · Transportation Research Record Journal of the Transportation Research Board · 2016
Dynamic parking pricing varies the cost of parking over location and time to achieve target occupancy rates. Such pricing seeks more efficient parking space use, reduced cruising for parking, and improved satisfaction with the parking experience. Evaluation practice in this field is developing as communities implement new programs. With four case studies, the programs and their evaluations are explained, and a comprehensive evaluation framework is developed. The framework differentiates between possible theory failure and program failure and distinguishes between direct, intermediate, goal, and program support outcomes. The review reveals that some metrics, such as congestion reduction, are not supported by theory or evaluation results. Other logical metrics, such as the efficiency of parking use as indicated by a ratio of district activity per parking space, are missing.
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Robert L. Phillips · Edward Elgar Publishing eBooks · 2024
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Ilia Krasikov, Rohit Lamba · SSRN Electronic Journal · 2019
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Arnd Vomberg · 2023
Dynamic and personalized pricing emerged as novel pricing approaches in the digital age; shifting to these approaches can increase company profits by 3% to 25%. Dynamic pricing allows firms to smoothen demand and supply and to remain competitive facing price pressure. Personalized pricing enables companies to tap into consumers’ different willingness to pay. However, such profit enhancements only set in if managers make good choices when implementing their company's pricing approach. Managers need to overcome potential adverse consumer reactions and comply with privacy regulations. They need to create an appropriate IT infrastructure, synchronize prices in their on- and offline channels, harmonize prices in their product portfolio, and nurture a mindset that is open to automating prices. This chapter introduces and discusses a systematic dynamic pricing process that provides practical guidance for decision-makers. This discussion enables managers to decide whether and how to implement a dynamic pricing approach.
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Artúr Velkey, Ádám Vig · OSF Preprints (OSF Preprints) · 2021
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Avunduk, Hüseyin, Küçükyılmaz, Sinem · DergiPark (Istanbul University) · 2020
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Elsevier eBooks · 2005
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Yossi Aviv, Gustavo Vulcano · Oxford University Press eBooks · 2012
Abstract Dynamic list pricing (DLP) belongs to the broad field of revenue management (RM), a practice that emerged more than three decades ago in the airline industry, and since then has been expanding into other business areas such as hospitality, car rental, retailing, and financial services. Under DLP, sellers use prices as a mechanism to control demand and maximize revenues; hence, DLP is considered to be a price-based RM strategy. This article surveys the large body of modelling-based research in dynamic pricing. Section 23.2 discusses the foundations of DLP: single-product models with finite and non-replenishable capacity. Section 23.3 is devoted to multiple products generated from a given set of limited resources. Section 23.4 brings in the forecasting process. Section 23.5 surveys models that capture the phenomenon of strategic waiting. Section 23.6 is devoted to other behavioural considerations and their impact on the pricing practice. Section 23.7 concludes and discusses directions for future research.
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Velkey, Artúr, Vig, Ádám · OSF Preprints (OSF Preprints) · 2020
Quantitive analysis of high speed railway's dynamic pricing strategy in Spain
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Vomberg, Arnd · MADOC (University of Mannheim) · 2023
Dynamic and personalized pricing emerged as novel pricing approaches in the digital age; shifting to these approaches can increase company profits by 3% to 25%. Dynamic pricing allows firms to smoothen demand and supply and to remain competitive facing price pressure. Personalized pricing enables companies to tap into consumers’ different willingness to pay. However, such profit-enhancements only set in if managers make good choices when implementing their company’s pricing approach. Managers need to overcome potential adverse consumer reactions and need to comply with privacy regulations. Managers need to create an appropriate IT infrastructure, synchronize prices in their on- and offline channels, harmonize prices in their product portfolio, and nurture a mindset that is open to automating prices. This book chapter introduces and discusses a systematic dynamic pricing process that provides practical guidance for decision-makers. This discussion enables managers to decide whether and how to implement a dynamic pricing approach.
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