Pricing and replenishment of competing perishable product variants under dynamic demand substitution

• Main Author: Sainathan, Arvind
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2014
• Subjects: DRNTU::Business
• Online Access: https://hdl.handle.net/10356/103345; http://hdl.handle.net/10220/19224
• Institution: Nanyang Technological University

I consider pricing and ordering decisions faced by a retailer selling a perishable product with a two-period shelf life over an infinite horizon. In the first period, the product is “new”; in the next, it becomes “old.” The new product is perceived by customers to have a higher quality than the old...