Research on Dynamic Pricing Model Based on e-Supply Chain Management

Abstract

With the influence of the uncertain factor in business trade, the research on dynamic pricing considering the random fluctuation of price has become an important project in managerial economics. In this paper, we introduce the uncertain factor, which produced by the random errors, into the pricing model of the dominant manufacturers. By introducing the expectation of retail price, variance and transfer price, we change the game of incomplete information into the game of complete information. Then we resolve the problem of optimal pricing about transfer price with extremum of function according to the optimal production and storage model.