Vendor Pricing Decisions And Risk Analysis Under Demand Uncertainty

The paper accounts the importance and the necessity of the risk analysis in pricing decision, and then puts forward a approach of normal pricing decision and price discrimination decision of monopolist in uncertain demand basing on the pricing decision in uncertain demand in abroad. In the research of normal pricing decision, study the methods of production determining and pricing upon condition that demand function permits random deviation and that consumer tastes may be uncertain, On the assumption that production is equal to or greater than sale quantity, and presents indices of measuring the risk of the methods and a decision making model based of expected profits and risks. In the research of discrimination pricing decision, we discuss the two-degree and third-degree price discrimination decision of monopolist. Finally, the article gives us a way of solving the third-degree decision model by computer simulation, and it analyses the result of simulation. The results show us that this method expand the theory of product pricing of monopolist and improve the utilization of the theory as well.