The Value of Information in Resource-Constrained Pricing
arXiv:2603.24974v1 Announce Type: cross Abstract: Firms that price perishable resources — airline seats, hotel rooms, seasonal inventory — now routinely use demand predictions, but these predictions vary widely in quality. Under hard capacity constraints, acting on an inaccurate prediction can irreversibly deplete inventory needed for future periods. We study how prediction uncertainty propagates into dynamic pricing decisions with linear demand, stochastic noise, and finite capacity. A certified demand forecast with known error bound~$epsilon^0$ specifies where the system should […]