Pricing Strategy in a Clearance Period

  • Tatiana Bouzdine-Chameeva
  • Arthur V. Hill
Conference paper
First Online:
Part of the Developments in Marketing Science: Proceedings of the Academy of Marketing Science book series (DMSPAMS)

Abstract

Setting prices for prices for retail clearance sales is a difficult task with potential for very large opportunity costs. This paper develops both deterministic and stochastic demand one-period models for setting the prices for clearance inventories. A comparison of two models shows that the penalty of using the deterministic model for the stochastic optimization problem can be very large.

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References

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Copyright information

© Academy of Marketing Science 2015

Authors and Affiliations

  • Tatiana Bouzdine-Chameeva
    • 1
  • Arthur V. Hill
    • 1
  1. 1.MississippiUSA

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