Impact of cost uncertainty on pricing decisions under risk aversion.

European Journal of Operational Research（2016）

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摘要

•We identify the root causes of cost uncertainty in service.•We investigate the impact of cost and demand uncertainties on pricing decisions under risk aversion.•Cost uncertainty increases price, whereas demand uncertainty reduces it.•We establish an optimal cost contingency policy under a sequential service engagement process.

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关键词

Pricing,Service,Cost uncertainty,Risk aversion,Cost contingency

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