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Introduction to Choice Modeling

  • Guillermo Gallego
  • Huseyin Topaloglu
Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 279)

Abstract

Revenue management models were originally developed under the assumption of stochastically independent demands. This assumption is untenable when products are close substitutes. In this case, the demand for a particular product may depend on the set of competing products that are available in the market. For example, when a product is removed from an assortment, its demand may be recaptured by another product in the assortment, or it may spill to competitors or the no-purchase alternative.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  • Guillermo Gallego
    • 1
  • Huseyin Topaloglu
    • 2
  1. 1.Clearwater BayHong Kong
  2. 2.ORIECornell UniversityNew YorkUSA

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