NDLI: Joint decisions on pricing and capacity allocation for cyberspace rental services

Content Provider	IEEE Xplore Digital Library
Author	Yulin Zhang Mingfang Zeng
Copyright Year	2010
Description	Author affiliation: Department of Management Science and Engineering, Southeast University, 211196, China (Yulin Zhang) \|\| Southeast University, 211196, China (Mingfang Zeng)
Abstract	For cyberspace rental service providers with multiple services, study about how to control capacity allocation on fixed aggregate capacity and how to price services is a significant problem. This paper firstly reviews some research about pricing and capacity control, and then builds models relevant to consumers' reservation price and preferences, based on the assumption that customer arrival process is a Poisson process. Next expected revenue under different situations and solutions to it is presented. Finally, numerical examples are given to calculate the optical price and allocation as well as its expected revenue, so that relations between the optimal value, expected revenue and reservation price and preferences are verified. From the analysis the following conclusions are drew: l)The greater the customer subjective value variability of some service is, the higher its price and capacity allocation are; and the price of its substitute service will rise, but the capacity allocation of its substitute service will drop. 2) When the performance of some service is strengthened, its price will rise as well as its capacity allocation and expected revenue; and the price of its substitute service will rise, but the capacity allocation of its substitute service will drop. So service providers should strive to upgrade service performances.
Starting Page	1
Ending Page	6
File Size	213673
Page Count	6
File Format	PDF
ISBN	9781424464852
e-ISBN	9781424464876
DOI	10.1109/ICSSSM.2010.5530132
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2010-06-28
Publisher Place	Japan
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Costs consumer choice preferences Asset management Engineering management Aggregates Customer satisfaction Pricing Hardware Performance analysis Internet cyberspace rental services Web server revenue management reservation price
Content Type	Text
Resource Type	Article

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