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Articles

Dynamic Pricing with Consumers' Double-entry Mental Accounting and Reference Effects

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  • School of Economics and Management, Fuzhou University, Fuzhou 350108, China

Received date: 2013-12-17

  Revised date: 2014-07-21

  Online published: 2015-09-28

Abstract

The background value is one of the key factors influencing the accuracy of GM(1,1) model.The improved models by optimizating background value are effective at present.But a lot of the optimized formulas are complicated and part of them are also not suitable for the high growth series.According to the exponential properties and intergral characteristics of model, the structure principle of background value is analyzed, and a new construction method is proposed in this paper using the irregular trapezoid to replace the traditional one based on the core idea of Riemann integral,so as to achieve optimizing model.The test results showed that the optimized model possessed white exponential law coincidence property,it could be applied to low-rising exponential series,and also could be the same with high-rising one.Thus,the test verified the improved GM(1,1) model with simpler formula was higher in practicality and reliability.

Cite this article

JIANG Yi-xian, ZHANG Qi-shan . Dynamic Pricing with Consumers' Double-entry Mental Accounting and Reference Effects[J]. Chinese Journal of Management Science, 2015 , 23(9) : 146 -152 . DOI: 10.16381/j.cnki.issn1003-207x.2015.09.018

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