Summary: OPERATIONS RESEARCH
© 2009 INFORMS
e - c o m p a n i o n
ONLY AVAILABLE IN ELECTRONIC FORM
Electronic Companion--"Personalized Dynamic Pricing of
Limited Inventories" by Goker Aydin and Serhan Ziya,
Operations Research, doi 10.1287/opre.1090.0701.
"Personalized Dynamic Pricing ..." by Aydin and Ziya
Appendix A - Extension: Non-signaling Customers
Here we extend the model of Section 4 to consider the possibility that the firm may not be able to
observe signals from all the customers. In the case where signals are volunteered by the customers
themselves, some of the customers may simply choose to hide their signals for privacy concerns.
For example, customers can choose to hide their identities online by simply deleting the cookies
that track them. In the case where signals are typically directly observed by the firm without any
need for customer volunteering, the signal may simply be unavailable for a group of customers. For
instance, if the signal uses past purchasing data, the firm may not have sufficient information on
relatively new customers.