Optimal pricing when facing a risk-taking speculator with advertising strategy
| Autor: | Ying-feng Tang, 唐英峰 |
|---|---|
| Rok vydání: | 2011 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 99 We study a monopolist firm of real estate when facing a speculator''s firm selling a fixed capacity. The firm sets a price before demand uncertainty is resolved. Speculators may enter the market purely with the intention of resale, which can be profitable if demand turns out to be high. We also find out that speculator is not risk-neutral, seller will not shut speculator out of the market. Furthermore, we add an advertising strategy in the paper and increase profits of seller and speculator. Consumers may strategically choose when to purchase, and they may also choose to purchase from the firm or from the speculator. There are three findings. First, the presence of speculators increases the firm’s expected profits even though the resale market competes with the firm. Second, Seller will increase profit when facing speculator with advertising strategy in dynamic pricing. Third, seller will earn less profit when facing risk-aversion speculator. On the other hand, seller will earn more profit when facing risk-prone speculator, the overall profits (seller and speculator''s profit) will also increase gradually. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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