Seminars

ME/IE 8773-8774
INDUSTRIAL ENGINEERING DIVISION SEMINAR SERIES
Operations Research
Host: William L. Cooper

A Sequential Dynamic Pricing Model and Its Applications

by

Kyle Y. Lin
Assistant Professor
Grado Department of Industrial and Systems Engineering
Virginia Tech

Wednesday, April 14, 2004
3:30-5:00 p.m.
Room 1130 ME
Coffee and cookies will be available at 3:15 p.m. before the seminar

Abstract: Dynamic pricing is a business strategy that adjusts the product price in real time in order to maximize profit. Dynamic pricing problems are in general difficult because in different industries the customer arrival processes and the customer willingness to pay can be very different. In this talk, I will first describe and solve a sequential dynamic pricing model. I will then explain a unified approach—which uses the results from this sequential model—to approximate the optimal policy for any continuous-time dynamic pricing problems. In particular, this approach motivates a real-time learning mechanism that allows the seller to better set the product price for future customers based on realized demand.

Bio: Kyle Lin is an Assistant Professor in the Grado Department of Industrial and Systems Engineering at Virginia Tech. He received his Ph.D. in Industrial Engineering and Operations Research at U.C. Berkeley in 2000, and was a research scientist at KLA-Tencor before joining Virginia Tech in 2001. Dr. Lin’s research is in the area of applied probability and stochastic modeling, with applications in revenue management, e-commerce, and telecommunication systems. He has published several articles in research journals such as Operations Research and Naval Research Logistics. He recently received a National Science Foundation grant that supports his research on dynamic pricing in a competitive market.

Informal Faculty Luncheon: : Wednesday, April 14, 2004, 12:00 noon. Meet in 1100 ME and walk to lunch with other faculty. Prof. Kyle Lin will be able to attend.