• Proceedings of the KIEE Conference
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• 2009.07a
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• pp.541_542
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• 2009

This paper reviews the definition and background of dynamic pricing which is the essential element of demand response system. Also, economic efficiency and related issues on dynamic pricing are studied. Several issues on design and operation of demand response system, which can implement the dynamic pricing, are described. Therefore the results will be helpful for developing the demand response system with dynamic pricing.

• Journal of Korea Society of Industrial Information Systems
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• v.17 no.2
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• pp.11-18
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• 2012

Smart Dynamic Pricing has been introduced to address the under-utilised network resources problem in mobile telecommunications systems. In this paper, we investigate the applicability of Smart Dynamic Pricing and its signalling models into Cognitive Radio Systems. Cognitive Radio System is defined as one in which cognitive radios are employed to access shared spectrum and/or dynamically allocated spectrum. Network elements, protocols, traffic and control channels, and system architecture are proposed for the implementation of Smart Dynamic Pricing in Cognitive Radio System. It is found that Smart Dynamic Pricing and its signalling models can be applied to Cognitive Radio Systems.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.4
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• pp.123-138
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• 2009

This study examined the first- and second-best pricing by stable dynamics in congested transportation networks. Stable dynamics, suggested by Nesterov and de Palma (2003), is a new model which describes and provides a stable state of congestion in urban transportation networks. The first-best pricing in user equilibrium models introduces user-equilibrium in the system-equilibrium by tolling the difference between the marginal social cost and the marginal private cost on each link. Nevertheless, the second-best pricing, which levies the toll on some, but not all, links, is relevant from the practical point of view. In comparison with the user equilibrium model, the stable dynamic model provides a solution equivalent to system-equilibrium if it is focused on link flows. Therefore the toll interval on each link, which keeps up the system-equilibrium, is more meaningful than the first-best pricing. In addition, the second-best pricing in stable dynamic models is the same as the first-best pricing since the toll interval is separately given by each link. As an effect of congestion pricing in stable dynamic models, we can remove the inefficiency of the network with inefficient Braess links by levying a toll on the Braess link. We present a numerical example applied to the network with 6 nodes and 9 links, including 2 Braess links.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.3
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• pp.97-105
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• 2006

Brand Pricing is the most important issue for the brand manager in the dynamic market. in the typical dynamic pricing model, a linear function has been used based on the assumption that the non-Price Influences and the price influences were independent. However, to incorporate the characteristics of the dynamic market, it is natural to consider the multiplicative relationship. We are going to try the multiplicative linkage between the non-price Influences and the price influences and suggest a new dynamic pricing model with e multiplicative functional form. An empirical study of 19 brands in the Korean cigarette market shows the feasibility of the suggested model.

• The Journal of the Korea Contents Association
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• v.12 no.6
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• pp.56-67
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• 2012

The User Created Contents (UCC) are traded actively on the on-line market. The current pricing policy on the UCC market is the fixed pricing, which is set by the seller once and price never changes again. However market demand and supply are changing hourly, so the studies about dynamic pricing to determine more properly have been carried out. This paper suggests dynamic pricing models for UCC by analyzing the customer's searching pattern. We propose 2 pricing models (trend change-based pricing model and relative pricing model), and experiment various status by controlling system and market variables. We demonstrated our model by computational modeling and simulation. The result of this research can be useful guidelines to increase the revenue and profit of the UCC Market.

• Journal of information and communication convergence engineering
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• v.13 no.2
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• pp.86-96
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• 2015

In mobile communication, mobile services [MSs] (e.g., phone calls, short/multimedia messages, and Internet data) incur a cost to both mobile users (MUs) and mobile service providers (MSPs). The proposed model MobPrice consists of dynamic data pricing schemes for mobile communication in order to achieve optimal usage of MSs at minimal prices. MobPrice inspires MUs to subscribe MSs with flexibility of data sharing and intra-peer exchanges, thereby reducing overall cost. The main contributions of MobPrice are three-fold. First, it proposes a novel k-level data-pricing (kDP) scheme for MSs. Second, it extends the kDP scheme with the notion of service-sharing-based pricing schemes to a collaborative peer-to-peer data-pricing (pDP) scheme and a cluster-based data-pricing (cDP) scheme to incorporate the notion of 'cluster' (made up of two or more MUs) in mobile communication. Third, our performance study shows that the proposed schemes are indeed effective in maximizing MS subscriptions and minimizing MS's price/user.

• Architectural research
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• v.19 no.3
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• pp.71-77
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• 2017

Dynamic pricing refers to a system in which a tariff varies, according to a level of charging and applied time depending on time change. The power billing system used in the Korean Electric Power Corporation (KEPCO) is based on time of use (TOU) pricing, which is one of the dynamic pricing systems. This paper aimed to determine the operational results of a variable refrigerant flow system, to which a new control algorithm was applied, in order to respond to dynamic pricing, in summer and the utility of the new control. To do this, real measured data was acquired from a VRF system installed in a building for educational purposes, where dynamic pricing was applied for about 100 days during summer time. At the maximum load operation time period in TOU, the new control minimized operation within the indoor comfort range, an increase in refrigerant evaporation temperature in the indoor unit and the number of revolutions in a compressor in the outdoor unit was limited. As a result, power usage was decreased by 11%, and the operational cost by 14.6%. Furthermore, measurement results using the Predicted Mean Vote (PMV) model, that represented satisfaction of thermal environment, showed that 82.8% to 90.4% of the occupants of the building were satisfied during operation when the new control was applied.

• Journal of Korean Institute of Industrial Engineers
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• v.23 no.3
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• pp.545-557
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• 1997

This paper deals with dynamic optimal pricing for new products by a firm which maximizes the discounted profit stream of it's own in a duopoly. The problem is constructed as differential games and dynamic optimization theory. Cost is assumed to decline as time goes on. A modified customer's choice model is formulated as a diffusion model and we solve a dynamic optimization problem by adopting the diffusion model. Since this paper focus on deriving real prices not showing a time trend, we formulate recursive form equations of costate variables(shadow price) and a simultaneous equation of price. Hence we derive a dynamic optimal pricing model for using in real market. In particular, we construct a dynamic optimal pricing model in the case that there are benefits from not only new subscribers but also previous subscribers. We analyze instant camera market in U.S.A(1976-1985) by utilizing the above model.

• Korean Management Science Review
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• v.29 no.2
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• pp.91-103
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• 2012

Revenue management problems originated in the 1970's in the context of the airline industry have been successfully introduced in airline industries. It has started on the capacity control by booking classes for available seats, and has been recognized as a powerful tool to maximize the total revenue. Changing customer behavior and airline market environments, however, has required a new mechanism for improving the revenue. Dynamic pricing is one of innovative tools which is to adjust prices according to the market status. In this paper, we consider a dynamic pricing and seat control problem for discrete time horizon. The problem can be modeled as a stochastic programming problem. Applying the linear approximation technique and given the price set for each time, we suggest a mixed Integer Programming model to solve our problem efficiently. From the simulation results, we can find our model makes good performance and can be expanded to other comprehensive problems.

• Industrial Engineering and Management Systems
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• v.7 no.3
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• pp.257-265
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• 2008

This paper deals with the joint decisions on pricing and ordering for a monopolistic retailer who sells perishable goods with a fixed lifetime or demand period. The newsvendor-typed problem is formulated as a two-period inventory system where the first period represents the inventory of fresh or new-arrival items and the second period represents the inventory of items that are older but still usable. Demand may be for either fresh items or for somewhat older items that exhibit physical decay or deterioration. The retailer is allowed to adjust the selling price of the deteriorated items in the second period, which stimulates demand and reduces excess season-end or stale inventory. This paper develops a stochastic dynamic programming model that solves the problem of preseason decisions on ordering-pricing and a within-season decision on markdown pricing. We also develop a fixed-price model as a benchmark against the dual-price dynamic model. To illustrate the effect of the dual-price policy on expected profit, we conduct a comparative study between the two models. Extension to a generalized multi-period model is also discussed.