USE OF LIPSCHITZ CONDITION IN DEMAND-BASED PRICING STRATEGIES

  • Yaroslav Verbytsky European University
Keywords: price optimization, algorithms, data analysis, Lipschitz condition, market pricing, stability of the price function, demand modeling

Abstract

The purpose of the article is to delve into the integration of the Lipschitz condition in demand-driven pricing strategies within the retail sector, emphasizing its potential to address challenges related to price stability. This research aims to provide a detailed exploration of the Lipschitz condition's application, contributing to the ongoing discourse on dynamic pricing models and their optimization. Methodology. The study adopts a multifaceted approach, incorporating a comprehensive literature review and systematic analysis of academic sources pertinent to dynamic pricing. It further involves an in-depth examination of mathematical methodologies and algorithms, centering on the integration of the Lipschitz condition into retail pricing models. This methodology ensures a robust framework for analyzing the theoretical and practical implications of the Lipschitz condition in dynamic pricing. Findings. The article presents an intricate analysis of how the Lipschitz condition can be strategically employed within dynamic pricing structures. It seeks to illustrate the potential of this condition to facilitate proportional and consistent pricing adjustments, thereby enhancing price stability in the retail sector. A pricing model incorporating the Lipschitz condition was developed and scrutinized, utilizing empirical data. This model serves as a critical case study demonstrating the practical application and efficacy of the Lipschitz condition in dynamic pricing. Practical value. The findings of this research offer significant insights for both academics and practitioners involved in the development and optimization of pricing strategies in retail. The incorporation of the Lipschitz condition into pricing models emerges as a noteworthy contribution, providing a mathematically robust framework that enables businesses to rapidly adjust prices in response to dynamic changes in demand. This study thereby adds a valuable dimension to the existing body of knowledge in the field of retail pricing strategy, offering a novel perspective on the use of mathematical conditions in formulating responsive and stable pricing models.

References

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Article views: 48
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Published
2023-11-30
How to Cite
Verbytsky, Y. (2023). USE OF LIPSCHITZ CONDITION IN DEMAND-BASED PRICING STRATEGIES. Scientific Bulletin of Poltava University of Economics and Trade. A Series of “Economic Sciences”, (4 (110), 92-95. https://doi.org/10.37734/2409-6873-2023-4-13
Section
MATHEMATICAL METHODS, MODELS AND INFORMATION TECHNOLOGIES IN ECONOMICS