Example: A retailer has purchased 400 ski jackets before the start of the winter season at a cost of $100 each. The season lasts three months and the retailer has forecast demand in each of the three months to be d₁ = 300-p₁, d₂ = 300 - 1.3 p2, and d3 = 300 -1.8 p3. How should the retailer vary the price of the parka over the three months to maximize revenue? If the retailer charges a constant price over the three months, what should it be? How much gain in revenue results from dynamic pricing? Example Cont'd: How many parkas should the retailer purchase at the beginning of the season, and how should they be priced over the three months of the season to maximize profits?