On the modeling of demand spill for a stochastic demand system under competition
نویسندگان
چکیده
When customers for a product from N substitutable alternatives find their first choice sold out, they might “spill” to their second-most preferred products. The existing literature typically assumes an exogenous spill rate. We develop a surprisingly simple model that links the spill rate to economic factors associated with direct demand systems.
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عنوان ژورنال:
- Oper. Res. Lett.
دوره 37 شماره
صفحات -
تاریخ انتشار 2009