Probabilistic Choice Models for Product Pricing Using Reservation Prices
In general, the Uniform Distribution, Weighted Uniform, and Price Sensitive Models have the same optimal solution while the Share-of-Surplus Model gives a different solution in many cases.
We develop a few heuristics for finding good feasible solutions. These simple and efficient heuristics perform well and help to improve the solution time.
Computational results of solving problem instances of various sizes are shown.
School:University of Waterloo
School Location:Canada - Ontario
Source Type:Master's Thesis
Keywords:pricing models combinatorics and optimization
Date of Publication:01/01/2007