Dynamic Nonlinear Pricing Model Based on Adaptive and Sophisticated Learning
Joint Authors
Chen, Xiaohong
Bi, Wenjie
Liu, Haiying
Sun, Yinghui
Source
Mathematical Problems in Engineering
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-03-20
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Abstract EN
Existing dynamic pricing models which take consumers’ learning behavior into account generally assume that consumers learn on the basis of reinforcement learning and belief-based learning.
Nevertheless, abundant empirical evidence of behavior game indicates that consumers’ learning is normally described as a process of mixed learning.
Particularly, for experience goods, a consumer’s purchase decision is not only based on his previous purchase behavior (adaptive learning), but also affected by that of other consumers (sophisticated learning).
With the assumption that consumers are both adaptive and sophisticated learners, we study a dynamic pricing model dealing with repeated decision problems in a duopoly market.
Specifically, we build a dynamic game model based on sophisticated experience-weighted attraction learning model (SEWA) and analyze the existence of the equilibrium.
Finally, we show the characteristics and differences of the steady-state solutions between models considering adaptive consumers and models considering sophistical consumers by numerical results.
American Psychological Association (APA)
Bi, Wenjie& Sun, Yinghui& Liu, Haiying& Chen, Xiaohong. 2014. Dynamic Nonlinear Pricing Model Based on Adaptive and Sophisticated Learning. Mathematical Problems in Engineering،Vol. 2014, no. 2014, pp.1-11.
https://search.emarefa.net/detail/BIM-498421
Modern Language Association (MLA)
Bi, Wenjie…[et al.]. Dynamic Nonlinear Pricing Model Based on Adaptive and Sophisticated Learning. Mathematical Problems in Engineering No. 2014 (2014), pp.1-11.
https://search.emarefa.net/detail/BIM-498421
American Medical Association (AMA)
Bi, Wenjie& Sun, Yinghui& Liu, Haiying& Chen, Xiaohong. Dynamic Nonlinear Pricing Model Based on Adaptive and Sophisticated Learning. Mathematical Problems in Engineering. 2014. Vol. 2014, no. 2014, pp.1-11.
https://search.emarefa.net/detail/BIM-498421
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-498421