Asymptotically Tight Bounds on the Optimal Pricing Strategy with Patient Customers

Abstract

In “Asymptotically Tight Bounds on the Optimal Pricing Strategy with Patient Customers,” Qian, Su, and Zhou revisit the problem of a monopolist seller’s optimal pricing strategy when dealing with both patient and impatient customers. The authors give asymptotically tight bounds on the optimal strategy’s cycle period and long-run average revenue when the patient customers’ patience level is high. This result also addresses an open question proposed by others regarding the optimal cycle period.