Gradually-Vanishing Asset and Its Pricing Model

In view of the characteristic of some assets different from perished assets,i.e., their values vanish gradually, conception of gradually-vanishing asset (GVA) was put forward. From the relationship between the number of products and the need of consumers, they were divided into two classifications. For one, the need of consumers can be met in most cases, and for the other, supply and demand do not match, with a seasonal or periodical change. A mathematical expression was proposed for the first kind of GVA, and a new pricing method—gradually-vanishing pricing model was brought forward. The result based on the comparison with other pricing methods shows that this method can decrease GVA value elapsing, raise enterprise revenue, increase consumer remnant, and further improve social welfare.