Takeo Takeno1,*, Toshifumi Uetake1, Masaaki Ohba2
1Faculty of Software and Information Science, Iwate Prefectural University, Takizawa, Iwate, Japan.
2College of Economics, Nihon University, Tokyo, Japan.
*Corresponding author: Takeo Takeno
Abstract
This paper describes a price setting problem for a perishable product to maximize the expected revenue. The problem is apparent in sales of fresh vegetables. We introduce Farmers’ market as a research object, where farmers set the price by themselves. Alarge size famer, who ships large number of agricultural products, tends to set lower price because of surplus stocks risk. To increase revenue of small size farmer, he needs available price difference to the competitor. For the problem, we present a consumer behavior model characterized by a joint probability distribution in which the price and demand are initially random variables. Secondly, we present a consumer–product matching model designed for computer simulation. The model represents a certain condition of our consumer behavior model in which the demand distribution is fixed. According to computer simulations comparing outcomes with various parameter settings, effects of a consumer’s expected price distribution are strongest.
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How to cite this paper
Effects of Consumer-Products Matching on Price Setting Problem for Perishable Products
How to cite this paper: Takeo Takeno, Toshifumi Uetake, Masaaki Ohba. (2022) Effects of Consumer-Products Matching on Price Setting Problem for Perishable Products. Journal of Humanities, Arts and Social Science, 6(2), 194-201.
DOI: http://dx.doi.org/10.26855/jhass.2022.06.005