Pricing with prescheduled sales

Maxim Sinitsyn*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


In this paper, I introduce a framework of price promotions by firms that preschedule their sale dates. I set up a dynamic model of demand accumulation in which high- and low-valuation consumers enter the market every period. The high-valuation consumers buy immediately and leave the market; the low-valuation consumers accumulate while waiting for the sale price. The firms schedule the dates of their promotions in advance. I find that often they use mixed strategies, choosing the future promotion period according to a probability distribution function. If the firms can cancel their prescheduled sales, typically they canwait longer until holding sales by shifting the probability distribution towards later periods. Scheduling promotions in advance increases the firms’ profits in comparison to the case when the promotion decision is made in the period when the promotion is offered.

Original languageEnglish (US)
Pages (from-to)999-1014
Number of pages16
JournalMarketing Science
Issue number6
StatePublished - Nov 1 2017
Externally publishedYes


  • Dynamic pricing
  • Price commitment
  • Price promotions
  • Sales

ASJC Scopus subject areas

  • Business and International Management
  • Marketing


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