Predicting price-tag for customized goods

Dulluri, Sandeep and Shrinivas, Prasanna and Raghavan, NR Srinivasa (2005) Predicting price-tag for customized goods. In: IEEE International Conference on Automation Science and Engineering, AUG 01-02, 2005, Edmonton, Canada.

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Abstract

We discuss a dynamic pricing model which will aid automobile manufacturer in choosing the right price for customer segment. Though there is oligopoly market structure, the customers get "locked" into a particular technology/company which virtually makes the situation akin to a monopoly. There are associated network externalities and positive feedback. The key idea in monopoly pricing lies in extracting the customer surplus by exploiting the respective elasticities of demand. We present a Walrasian general equilibrium approach to determine the segment price. We compare the prices obtained from optimization model with that from Walrasian dynamics. The results are encouraging and can serve as a critical factor in Customer Relationship Management (CRM) and thereby effectively manage the lock-in.

Item Type:	Conference Paper
Publisher:	IEEE
Additional Information:	Copyright 2005 IEEE. Personal use of this material is permitted. However, permission to reprint/republish this material for advertising or promotional purposes or for creating new collective works for resale or redistribution to servers or lists, or to reuse any copyrighted component of this work in other works must be obtained from the IEEE.
Department/Centre:	Division of Interdisciplinary Sciences > Management Studies
Date Deposited:	30 Apr 2010 05:43
Last Modified:	19 Sep 2010 06:00
URI:	http://eprints.iisc.ac.in/id/eprint/27366

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