Production and Operations Management 2010
Competitive Pricing in a Multi‐Product Multi‐Attribute Environment
Abstract
We address the problem of simultaneous pricing of a line of several products, both complementary products and substitutes, with a number of distinct price differentiation classes for each product (e.g., volume discounts, different distribution channels, and customer segments) in both monopolistic and oligopolistic settings. We provide a generic framework to tackle this problem, consider several families of demand models, and focus on a real‐world case‐study example. We propose an iterative relaxation algorithm, and state sufficient conditions for convergence of the algorithm. Using historical sales and price data from a retailer, we apply our solution algorithm to suggest optimal pricing, and report on numerical results.
- DOI
- 10.1111/j.1937-5956.2010.01195.x
- Sources
- openalex