Abstract
Current literature on price bundling focuses on the situation with limited capacity. This paper extends this research by considering multiple discrete customer segments each with individual size and buying behavior represented by distributed willingness to pay and max-surplus rule. We develop a stochastic non-linear programming model that can be solved by standard NLP optimization software. Aiming to examine the model behavior, we conduct a full-factorial numerical study and analyze the impact of capacity limitations and number of customer segments on optimal solutions.
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Gössinger, R., Wand, J. (2020). Capacitated Price Bundling for Markets with Discrete Customer Segments and Stochastic Willingness to Pay: ABasic Decision Model. In: Neufeld, J.S., Buscher, U., Lasch, R., Möst, D., Schönberger, J. (eds) Operations Research Proceedings 2019. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-030-48439-2_75
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DOI: https://doi.org/10.1007/978-3-030-48439-2_75
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