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A Dynamic Pricing Model of Service Provider with Different QoS Levels in Web Networks

In this paper, we propose a new continuous time model with price and time sensitive demand to consider dynamic pricing, order cancellation ration and different quality of service(QoS) levels in web networks. Then, we present a solution procedure to determine the optimal number of selling stages, the optimal price and service capacity. Finally, a numerical example is presented to illustrate the proposed method. The results show that the proposed method is an effective method for solving dynamic pricing policy of service provider with different QoS levels in web networks.