Abstract: The dynamic pricing strategy of perishable product is studied considering seller’s risk aversion and consumer inertia. Firstly, a Markov decision process is given for characterizing dynamic pricing strategy of risk-averse seller, and MNL random utility model is used to characterize the purchase decision of inertial consumer. On this basis, the dynamic pricing model of perishable product under the additive effect is established to maximize the risk-averse seller’s expected utility by dynamic programming method, and the influence of consumer inertia and seller’s risk aversion on the optimal price is discussed. The conclusions show that the optimal price decreases with the increase of inventory level, but increases with the increase of remaining sales time in the context of seller’s risk aversion and consumer inertia, and seller’s risk aversion and consumer inertia have both negative impact on the optimal price, in other words, the optimal price decreases with the increase of the inertia depth and inertia breadth, and the stronger seller’s risk aversion, the lower optimal price.

Key words: inertia behavior; dynamic pricing; risk aversion; perishable product