Multi-Product Newsvendor Problem with Budget Constraint and Strategic Customers
The widespread use of dynamic pricing strategy has trained customers to be more and more strategic, that is, when customers time their purchase, they not only consider whether the price offered is beyond their reservation prices, but also consider the possibility of getting it when the price is marked down,therefore, they may delay their purchase.A class of multi-product newsvendor problem with a budget constraint when considering strategic customer behavior is studied.The rational expectation equilibrium analysis is introduced and the rational expectation equilibrium solution to the static game between the newsvendor and the strategic customers is obtained.The impact of quantity commitment on the equilibrium quantity and equilibrium price is further analyzed.The properties of the optimal solutions are analyzed and a solution procedure is also presented.At last, numerical examples are given to illustrate the conclusions of the proposed model.