Document Type : Article
School of Industrial Engineering, College of Engineering, University of Tehran, Iran
Nowadays, due to the rapid pace of technology enhancement, growing consumer expectations, and market competitiveness, life cycle of products is shortening faster than it used to be. In such situations, where new generations of products lead to the obsolescence of those currently available, the simultaneous pricing of both newly developed and available products is a challenging task. In this paper, using game theory approaches, we investigate various possible conditions in which two firms may introduce new generations of products with short life cycles. Optimum price of newly developed and planned obsolescence products are determined by the proposed method. The effectiveness of the proposed method is verified using various numerical calculations and sensitivity analyses. A real case study from textile industry illustrates the application of the proposed approach in industry.