The determinants of dynamic pricing.

Summary This thesis deals with pricing in a dynamic framework. Using an interdisciplinary approach, we present three research papers that focus on the determinants of dynamic pricing. In the first work, we characterize the intertemporal pricing policy of a firm operating in a two-sided market. We identify the conditions for direct externalities to have the same impact on pricing as indirect externalities. In the second work, we study the dynamic pricing of a firm that conducts both product and process innovation policies. We show that process innovation is the primary determinant of pricing policy. In the third work, we conduct an empirical study and measure the dynamics of the reference price in the real estate market for both the seller and the buyer. In particular, our results show that the reference price adjusts twice as fast in a rising market than in a falling market.