Customized Bundle Pricing for Information Goods: A Nonlinear Mixed-Integer Programming Approach

This paper proposes using nonlinear mixed-integer programming to solve the customized bundle-pricing problem in which consumers are allowed to choose up to N goods out of a larger pool of J goods. Prior work has suggested that this mechanism has attractive features for the pricing of information and...

Full description

Saved in:

Bibliographic Details
Published in:	Management science Vol. 54; no. 3; pp. 608 - 622
Main Authors:	Wu, Shin-yi, Hitt, Lorin M, Chen, Pei-yu, Anandalingam, G
Format:	Journal Article
Language:	English
Published:	Linthicum, MD INFORMS 01.03.2008 Institute for Operations Research and the Management Sciences
Series:	Management Science
Subjects:	Applied sciences Bundling Consumer behavior Consumer goods Consumer surplus Consumers Cost of sales Customers Customization customized bundle Economic profit Electronic commerce Exact sciences and technology Information Information goods Integer programming Intellectual property Marginal costs Marketing Mathematical programming Menu costs Merchants Non-linear models Nonlinear programming Operational research and scientific management Operational research. Management science Optimal pricing Price policy Pricing Pricing policies Product bundling Product management Profits Programming Reservation prices Studies Valuation Welfare United States Script nonlinear programming Customization customized bundle Commerce Mixed integer programming Non linear programming Modeling Exact solution Integer programming Bundling Uncertain system Digital goods Welfare Preference Information value information goods Pricing Firm structure Profit Incomplete information Marginal cost electronic commerce
ISSN:	0025-1909, 1526-5501
Online Access:	Get full text
Tags:	Add Tag No Tags, Be the first to tag this record!

Be the first to leave a comment!