  This paper is concerned with the determination of pricing strategies for a
firm that in each period of a finite horizon receives replenishment quantities
of a single product which it sells in two markets, e.g., a long-distance market
and an on-site market. The key difference between the two markets is that the
long-distance market provides for a one period delay in demand fulfillment. In
contrast, on-site orders must be filled immediately as the customer is at the
physical on-site location. We model the demands in consecutive periods as
independent random variables and their distributions depend on the item's price
in accordance with two general stochastic demand functions: additive or
multiplicative.
  The firm uses a single pool of inventory to fulfill demands from both
markets. We investigate properties of the structure of the dynamic pricing
strategy that maximizes the total expected discounted profit over the finite
time horizon, under fixed or controlled replenishment conditions. Further, we
provide conditions under which one market may be the preferred outlet to sale
over the other.
