Santiago Gallino Wins Revenue Management and Pricing Practice Award

Santiago Gallino is a recipient of the 2015 INFORMS Revenue Management and Pricing Practice Award.

Tuck assistant professor Santiago Gallino is a recipient of the 2015 Institute for Operations Research and the Management Sciences (INFORMS) Revenue Management and Pricing Practice Award.

He and co-authors Marshall Fisher of The Wharton School and Jun Li of the Ross School of Business were presented with the award on June 12 at Columbia Business School for their paper “Competition-based Dynamic Pricing in Online Retailing.”

In the paper, the authors present a methodology that helps online retailers make pricing decisions. They propose a “best-response” pricing strategy that takes into account consumer choice behavior, competitors’ actions, and supply parameters. They validated their methodology with field experiments which ultimately yielded an 11 percent revenue increase.

“This is important research because it helps retailers decide if they should react when they observe a price change by the competition in a systematic way,” Gallino said. “Our work presents a scalable and replicable methodology to set dynamic prices in an online retail setting. We are proud to have won this award because it highlights both the academic novelty of our research as well as the business relevance of our findings.”

INFORMS is the largest society in the world for operations research, management science, and analytics professionals. This year’s competition was hosted by the Columbia Business School’s Center for Pricing and Revenue Management.