A freight transport price optimization model with multi bounded-rational customers

Li, Xueyan; Li, Jing

doi:10.1007/s11116-019-10064-0

Cited by 5 publications

(2 citation statements)

References 39 publications

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“…The anchoring effect (Epley and Gilovich, 2006; Li and Li, 2019) is often accompanied by loss avoidance (MIZERSKI, 1982), reference dependence (Popescu and Wu, 2007), and overconfidence (Kirshner and Shao, 2019). These most basic characteristics of human behavior lead people to make relatively satisfying choices based on their cognition of the environment and their own limited thinking instead of seeking the maximum utility.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal pricing of online products based on customer anchoring‐adjustment psychology

Liu

Zhou

et al. 2022

Int Trans Operational Res

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Online product pricing is an important factor that affects the purchase of customers and the earnings of e‐commerce platform enterprises. It has an increasingly prominent influence on consumers’ purchasing decisions. To study the influence of customers’ anchoring psychology and product pricing on customers’ purchasing behaviors, this paper proposes a pricing model that considers online consumers to be anchored by the product price and sales. The cognitive bias of online consumers is described by a utility function based on an anchoring‐adjustment heuristic, and consumer choice behavior and an online product pricing strategy are studied with a multinomial logit model. Then, it studies the influence of the anchoring point and anchoring degree on optimal pricing, sales and profit. In particular, when consumers are anchored only by sales of goods, the optimal solution is monotonic with respect to the anchoring degree. However, when consumers are anchored by both price and sales, both factors affect consumer behaviors and produce more complex results. This paper provides a flexible pricing mechanism for platform enterprises, and it can provide a theoretical basis and decision support for dynamic pricing of platform enterprises based on historical consumption data.

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Section: Literature Reviewmentioning

confidence: 99%

Optimal pricing of online products based on customer anchoring‐adjustment psychology

Liu

Zhou

et al. 2022

Int Trans Operational Res

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“…Compared with prospect theory, CPT has the following advances: it is more applicable, allows income and loss to have different weights, and satisfies first-order random dominance. In recent years, CPT has been widely applied to travel selection (Avineri [21], Xing [22], Jhala et al [23], Hu et al [24], Yang et al [25]), pricing of different transportation modes (Li et al [26], Jing et al [27], Li et al [28], Yang et al [29]) and other transportation researches. An et al [30] compared the differences between CPT and expected utility theory in examples of travel mode choice behavior, and better explained the decision-making process of car owners' travel mode under uncertain and risky conditions.…”

Section: Cumulative Prospect Theorymentioning

confidence: 99%

Analyzing the Competitiveness of Intermodal Road-Rail Transport through the Lens of Cumulative Prospect Theory

2024

Teh. vjesn.

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Due to the long-standing government pricing system implemented by the railway, the market-oriented reform mechanism for freight transportation pricing remains imperfect. As a result, Intermodal Road-rail Transport (IRRT) has not fully utilized its advantages in the market competition against the Truck-Only Transport (TOT) mode. This paper addresses the limited rationality of decision makers and considers the interests of shippers and carriers in order to enhance the competitiveness of IRRT. To tackle the uncertainty associated with transportation costs, including economic and time costs, a two-layer programming model is employed. The upper layer model focuses on maximizing the operator's profit, while the lower layer model captures the equilibrium freight volume resulting from the shippers' choice behavior when competing modes reach equilibrium. In order to construct the competitiveness model accurately of IRRT, the study integrates the principles of cumulative prospect theory (CPT). Finally, the model is solved using a heuristic algorithm based on sensitivity analysis, presenting a fresh perspective for the steady development of IRRT.

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Evolutionary analysis of participation behavior of shared parking in traditional business district

Guo,

Guan,

Han

et al. 2024

Transport Policy

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A freight transport price optimization model with multi bounded-rational customers

Cited by 5 publications

References 39 publications

Optimal pricing of online products based on customer anchoring‐adjustment psychology

Optimal pricing of online products based on customer anchoring‐adjustment psychology

Analyzing the Competitiveness of Intermodal Road-Rail Transport through the Lens of Cumulative Prospect Theory

Evolutionary analysis of participation behavior of shared parking in traditional business district

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