Business Commons^™

Revenue Management In Multi-Firm, Multi-Product Price Competition, Michael P. Moffatt

Electronic Thesis and Dissertation Repository

Dynamic pricing models in revenue management lack the ability to have multiple firms selling multiple product classes. In this thesis, a framework is created that allows for the construction of revenue management models with multiple firms, each selling multiple product types and where the firms have the ability to alter their prices instantly based on market conditions. The framework is a finite repeated game, where the optimal price for each state can be calculated through backwards induction. Conditions for existence of pure strategy Nash Equilibria are proven and conditions for unique pure strategy Nash Equilibria are discussed. We illustrate the …