Abstract
This chapter presents a model for the optimization of leasing rates in the automotive market. The modelis based on the nested logit concept. The scenario is based on the automotive leasing market in a particular region. This concerns the risk-specific leasing rates of the five major leasing providers. The model was embedded into a graphical user interface that allows for user interactions. The user has the option to modify the leasing rates both for his/her own company and the competitors. Risk-segment specific leasing volumes and profits are calculated depending on the set leasing prices. It is possible to calculate the profit-optimal leasing rates taking into account risk costs. It is found that although the profit figures are hypothetical because the risk-specific cost is not known and the model parameters are not based on past data. The model reacts in a sensible manner and that the optimization leads to intuitive results.
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