3.8 Article

A parallel between two classes of pricing problems in transportation and marketing

Journal

JOURNAL OF REVENUE AND PRICING MANAGEMENT
Volume 9, Issue 1-2, Pages 110-125

Publisher

PALGRAVE MACMILLAN LTD
DOI: 10.1057/rpm.2009.39

Keywords

pricing; networks; mixed-integer programming

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In this study, we establish a parallel between two classes of pricing problems that have attracted the attention of researchers in marketing, theoretical computer science and operations research, each community addressing issues from its own vantage point. More precisely, we contrast the problems of pricing a network or a product line, in order to achieve maximum revenue, given that customers maximize their individual utility. Throughout the article, we focus on problems that can be formulated as mixed-integer programs.

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