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Table 3 Prices and gross profits when X 0=a 0+G 0 and X 1=a 0+b 1 G 1 with independent G 0,G 1Ga(α,β) and varying parameter b 1 values

From: Optimal two-stage pricing strategies from the seller’s perspective under the uncertainty of buyer’s decisions

  α β σ G Π(p 0,max,p 1,max) p 0,max p 1,max \(\Pi (p^{\max }_{0},p^{\max }_{1})\) \(p^{\max }_{0}\) \(p^{\max }_{1}\)
b 1=0.5 100 2 5 238.2429 238.3686 218.6924 241.1509 243.4476 218.6442
  25 0.5 10 229.9149 230.1152 214.1065 235.7860 240.6705 214.1065
  6.25 0.125 20 217.1670 217.3732 207.1570 228.2490 238.4532 207.1570
  2.78 0.056 30 207.4754 207.5638 202.3953 223.0999 238.8913 202.3953
b 1=1.1 100 2 5 238.3830 238.3686 242.3547 241.4216 243.7144 220.6309
  25 0.5 10 230.1187 230.1152 233.4259 240.3086 246.1226 233.3253
  6.25 0.125 20 217.3363 217.3732 219.6358 231.6847 242.9417 219.6334
  2.78 0.056 30 207.5313 207.5638 208.8733 224.8072 241.2413 208.8733
b 1=2.1 100 2 5 238.6217 238.3686 282.7481 241.4216 243.7144 220.6309
  25 0.5 10 230.4780 230.1152 267.7370 250.7337 252.1044 248.5686
  6.25 0.125 20 217.6737 217.3732 245.0225 241.6766 253.5593 244.0345
  2.78 0.056 30 207.6767 207.5638 226.2926 229.9190 247.4248 225.7422