Abstract
We consider a multi-period revenue maximization and pricing optimization problem in the presence of reference prices. We formulate the problem as a mixed integer nonlinear program and develop a generalized Benders’ decomposition algorithm to solve it. In addition, we propose a myopic heuristic and discuss the conditions under which it produces efficient solutions. We provide analytical results as well as numerical computations to illustrate the efficiency of the solution approaches as well as some managerial pricing insights.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.