Optimizing Offline and Online Selling Prices in a Monopolistic Environment

Abstract

Based on two linear deterministic demand models, the sales revenue function of a multivariate quadratic form is formulated in this paper to determine the optimal offline and online selling prices for a retailer in a monopolistic environment. The impacts of the uniform delivery lead time on the retailer’s optimal pricing scheme and profitability are analytically examined. A numerical study is conducted to demonstrate these impacts.