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The "Cascade Degradation Coefficient" Dynamic Pricing Model: From Mathematical Framework to Flower Retail Practice

WSEAS Transactions on Business and Economics | 2026

Paper Details

Authors: Mamedova N.; Golota O.

DOI: 10.37394/23207.2026.23.46

Journal: WSEAS Transactions on Business and Economics

Year: 2026

Publisher: World Scientific and Engineering Academy and Society

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 0

Abstract

This article presents the results of the development of a hybrid mathematical dynamic pricing model, the "Cascade Degradation Coefficient," for the cut flower market. The research methodology is based on the synthesis of dynamic and stochastic modeling frameworks, utilizing piecewise-defined functions to describe cascade degradation, monotonic cosine-based functions to model the visual factor, a modified hyperbolic tangent to account for psychological perception, and multiplicative seasonal modulators. As a result, a multiplicative model integrating four independent factors has been created: temporal, visual, psychological, and seasonal. The conducted verification confirmed the model's physical realizability. The practical significance of the research lies in the creation of a tool for transitioning from intuitive pricing to data-driven optimization, enabling the maximization of profit and minimization of losses from write-offs in flower retail and e-commerce. © 2026, World Scientific and Engineering Academy and Society. All rights reserved.

Keywords

Cascade Degradation Coefficient; Cut Flower Market; Data-Driven Optimization; Flower Retail; Hybrid Mathematical Model; Multiplicative Model; Perishable Goods; Perishable Product Pricing; Pricing Model; Stochastic Modeling