On pricing and composition of bundles

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dc.contributor.authorBitran, Gabriel R.
dc.contributor.authorFerrer, Juan Carlos
dc.date.accessioned2024-01-10T13:51:22Z
dc.date.available2024-01-10T13:51:22Z
dc.date.issued2007
dc.description.abstractThis paper addresses the problem of how to determine the composition and price of a bundle so as to maximize the total expected profit. To motivate the problem, we use as a setting a high-tech manufacturing company that operates in a competitive environment, is not a leader in the industry, and is constantly reacting to bundles introduced by the leader. Bundles are sets of components that must meet technical constraints. The company's objective is to build a bundle and offer it in a market where it will compete with other bundles. Consumers purchase the bundle that maximizes their utility after examining all available bundles. The company selection of the bundle's components and its price is made in light of the bundles against which it will be competing and the uncertainty in the consumer choice process. The optimal decision could be found by solving a nonlinear mixed integer program, which is difficult to solve. Instead, we propose an efficient solution procedure to determine the optimal composition of the bundle and the price at which it should be offered. The paper concludes with a brief discussion of extensions of the research to cases that consider multiple segments of customers and/or multiple bundles.
dc.fechaingreso.objetodigital2024-05-14
dc.format.extent16 páginas
dc.fuente.origenWOS
dc.identifier.doi10.1111/j.1937-5956.2007.tb00168.x
dc.identifier.eissn1937-5956
dc.identifier.issn1059-1478
dc.identifier.urihttps://doi.org/10.1111/j.1937-5956.2007.tb00168.x
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/79597
dc.identifier.wosidWOS:000246451500006
dc.information.autorucIngeniería;Ferrer J;S/I;86696
dc.issue.numero1
dc.language.isoen
dc.nota.accesocontenido parcial
dc.pagina.final108
dc.pagina.inicio93
dc.publisherWILEY
dc.revistaPRODUCTION AND OPERATIONS MANAGEMENT
dc.rightsacceso restringido
dc.subjectbundling
dc.subjectconsumer choice models
dc.subjectpricing
dc.subjectproduct line selection
dc.subjectCONJOINT-ANALYSIS
dc.subjectMODEL
dc.subjectPRODUCTS
dc.subject.ods09 Industry, Innovation and Infrastructure
dc.subject.odspa09 Industria, innovación e infraestructura
dc.titleOn pricing and composition of bundles
dc.typeartículo
dc.volumen16
sipa.codpersvinculados86696
sipa.indexWOS
sipa.indexScopus
sipa.trazabilidadCarga SIPA;09-01-2024
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