Optimization Based Approaches to Product Pricing
نویسنده
چکیده
We consider various axioms for customer behaviour using utility functions and socalled “reservation prices” and then based on these axioms, we discuss some mathematical models (employing integer programming, convex programming and classical nonlinear programming) for deciding on product prices to maximize the total profit (or perhaps another suitable objective function also involving minimization of risk). We also share some of our experiences from a recent collaborative research project involving a company in the tourism sector.
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