Competitive Pricing in a Multi‐Product Multi‐Attribute Environment

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.

• 저널Production and Operations Management · 20(5) · 668–680
• 토픽Supply Chain and Inventory Management · Management Information Systems
• DOI10.1111/j.1937-5956.2010.01195.x
• 저자Soulaymane Kachani, Kyrylo Shmatov