
Optimal spatial pricing strategies with transportation costs
Carlier, Guillaume; Buttazzo, Giuseppe (2010), Optimal spatial pricing strategies with transportation costs, in Leizarowitz, Arie; Mordukhovich, Boris; Shafrir, Itai; Zalavski, Alexander, Nonlinear Analysis and Optimization II: Optimization, American Mathematical Society : Providence (R.I.), p. 105-122
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Type
Communication / ConférenceDate
2010Conference title
International Conference on Nonlinear Analysis and Optimization in celebration of Alex Ioffe's 70th and Simeon Reich's 60th birthdaysConference date
2008-06Conference city
HaifaConference country
IsraëlBook title
Nonlinear Analysis and Optimization II: OptimizationBook author
Leizarowitz, Arie; Mordukhovich, Boris; Shafrir, Itai; Zalavski, AlexanderPublisher
American Mathematical Society
Published in
Providence (R.I.)
ISBN
0-8218-4835-6
Number of pages
290Pages
105-122
Metadata
Show full item recordAbstract (EN)
We consider an optimization problem in a given region Q where an agent has to decide the price p(x) of a product for every x ∈ Q. The customers know the pricing pattern p and may shop at any place y, paying the cost p(y) and additionally a transportation cost c(x, y) for a given trans- portation cost function c. We will study two models: the first one where the agent operates everywhere on Q and a second one where the agent op- erates only in a subregion. For both models we discuss the mathematical framework and we obtain an existence result for a pricing strategy which maximizes the total profit of the agent. We also present some particular cases where more detailed computations can be made, as the case of con- cave costs, the case of quadratic cost, and the onedimensional case. Finally we discuss possible extensions and developments, as for instance the case of Nash equilibria when more agents operate on the same market.Subjects / Keywords
Optimization; Pricing; Transportation costsRelated items
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