Dynamic List Pricing

Gustavo Vulcano*, Yossi Aviv

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

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.

Original languageEnglish
Title of host publicationThe Oxford Handbook of Pricing Management
PublisherOxford University Press
ISBN (Electronic)9780191750564
ISBN (Print)9780199543175
DOIs
StatePublished - 21 Nov 2012

Keywords

  • Demand
  • List pricing
  • Pricing methods
  • Revenue management
  • Strategic waiting

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