• Citer

Multi-product pricing under a ranked-based consumer choice model: mixed-integer formulations for the Capacitated Rank Pricing Problem

par Domínguez Sánchez, Concepción ;Labbé, Martine ;Marin, Alfredo
Publication Non publié, 2021-01-26

Travail de recherche/Working paper

• Accès en ligne
• Détails
• Contenu
• Statistiques

Résumé :

Pricing under a consumer choice model has been extensively studied in economics and revenue management. In this paper, we tackle a generalization of the Rank Pricing Problem (RPP), a multi-product pricing problem with unit-demand customers and a ranking-based consumer choice model. We generalize the RPP assuming that each product has a limited amount of copies for sale, and we call this extension the Capacitated Rank Pricing Problem (CRPP). We introduce two integer linear formulations for the CRPP and derive valid inequalities leveraging the structure of the problem. Next we develop separation procedures for the families of valid inequalities of greater size. The performance of the formulations and the resolution algorithms developed is tested by means of extensive computational experiments.