- Series Information
- List of Figures
- List of Tables
- List of Boxes
- List of Contributors
- Why Are Prices Set the Way They Are?
- Airline Pricing
- Electric Power Pricing
- Health Care Pricing in the United States: The Case of Hospitals
- Pricing in Restaurants
- Pricing of On-line Display Advertising
- Consumer Credit Pricing
- Wireless Services Pricing in the United States
- For What IT’s Worth: Pricing Internal IT Services
- Television Advertisement Pricing in the United States
- Pricing in the Cruise Line Industry
- Less-than-Truckload Pricing
- Pricing in the North American Protein Industry
- Wine Pricing in the United States
- Pricing and sales practices at the Grand Bazaar of İstanbul
- Price Theory in Economics
- Models of Demand
- Game Theory Models of Pricing
- Behavioral Issues in Pricing Management
- Customized Pricing
- Nonlinear Pricing
- Dynamic List Pricing
- Sales Promotions
- Markdown Management
- Revenue Management
- Auction Pricing
- Services Engineering: Design and Pricing of Service Features
- Pricing in Business-to-Business Contracts: Sharing Risk, Profit, and Information
- Pricing and Inventory Management
- Structuring and Managing an Effective Pricing Organization
- Global Pricing Strategy
- Using Lean Six Sigma to Improve Pricing Execution
- Mastering your Profit Destiny in Business-to-Business Settings
- Current Challenges and Future Prospects for Pricing Management
Abstract and Keywords
This article demonstrates how human deviations affect pricing management in both areas of consumer pricing and pricing contracts among firms. It is organized as follows. Section 20.2 discusses some important theories regarding human decision making and social preferences, including the well-known ‘prospect theory’. Section 20.3 focuses on consumer pricing and investigates how different behavioural regularities affect a firm's marketing and pricing decisions. Section 20.4 discusses critical behavioural issues that impact the design and performance of pricing contracts among firms. Section 20.5 summarizes the discussion and concludes by suggesting future research that considers behavioural issues in pricing management.
Özalp Özer is Professor of Management at the University of Texas at Dallas. He was also a faculty member at Columbia University and Stanford University. His areas of specialization include pricing management, supply chain management, global production and distribution system design, contract and incentive design, capacity and inventory planning. His articles on these topics have appeared in leading academic journals such as Management Science and Operations Research. He has also received several teaching awards by vote of students at Columbia and Stanford. National Science Foundation and Fortune 500 companies have supported his research and teaching activities. He is an active consultant to industries such as high technology and retail. He has been invited to present his work in national and international conferences and in lectures at universities, such as MIT Sloan Business School of Management, INSEAD, and London Business School. He received his PhD and MS degrees from Columbia University.
Yanchong Zheng is Assistant Professor of Operations Management at the MIT Sloan School of Management. Her research focuses on studying behavioral issues in an operations context. She uses both analytical modeling and empirical methods to investigate how nonpecuniary factors impact strategic interactions between forms as well as between firms and consumers. She received her PhD at Stanford University.
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