Dynam ic Pricing Policy of the SeasonalProducts Based on RevenueM anagement

To gain maximum expected revenue, dynamic pricing policy of seasonal products was studied based on revenue managemen.t A continuous-time dynamic pricing model with customer reservation pricewasproposed. The optimal solutionwas obtained under the condition thatdemand is a Poisson process and reservation price is exponential distribution. Simulation shows that the optimal price is a decreasing function of initial inventory and an increasing function ofsale period and potential buying probability; expected revenue is an increasing function of remaining sale period and initial inventory, butmarginal expected revenue is a decreasing function of initial inventory.