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The Pricing Problem

Published online by Cambridge University Press:  27 July 2009

Jaxk H. Reeves ,
Ashim Mallik  and
William P. McCormick
Jaxk H. Reeves
Affiliation:
Department of StatisticsThe University of Georgia, Athens, Georgia 30602
Ashim Mallik
Affiliation:
Department of StatisticsThe University of Georgia, Athens, Georgia 30602
William P. McCormick
Affiliation:
Department of StatisticsThe University of Georgia, Athens, Georgia 30602
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Abstract

A sequential procedure to select optimal prices based on maximum likelihood estimation is considered. Asymptotic properties of the pricing scheme and the concommitant estimation problem are examined. For small sample sizes, simulation results show that the proposed procedure has high efficiency relative to the best procedure when the parameter is known.

Type
Research Article
Information
Probability in the Engineering and Informational Sciences , Volume 1 , Issue 3 , July 1987 , pp. 349 - 366
Copyright
Copyright © Cambridge University Press 1987

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References

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