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- W2016092742 abstract "We present a flexible and versatile model which addresses the problem of assigning optimal prices to assets whose value becomes zero after a fixed expiry date. (Such assets include the important example of seats on airline flights.) Our model is broad in scope, in particular encompassing the ability to deal with arrivals of customers in groups. It is highly adaptable and can be adjusted to deal with a very extensive set of circumstances. Our approach to the problem is based on elementary and intuitively appealing ideas. We model the arrival of customers (or groups of customers) according to an inhomogeneous Poisson process. We incorporate into the model time dependent price sensitivity (which may also be described as “time dependent elasticity of demand”). In this setting the solution to the asset pricing problem is achieved by setting up coupled systems of differential equations which are readily amenable to numerical solution via (for instance) a vectorised Runge–Kutta procedure. An attractive feature of our approach is that it unifies the treatment of discrete and continuous prices for the assets." @default.
- W2016092742 created "2016-06-24" @default.
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- W2016092742 date "2012-10-01" @default.
- W2016092742 modified "2023-10-18" @default.
- W2016092742 title "A flexible model for the pricing of perishable assets" @default.
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- W2016092742 doi "https://doi.org/10.1016/j.omega.2011.10.001" @default.
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