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Qualitative Choice and Logit Models Applied to Price Optimization

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Innovations and Advanced Techniques in Systems, Computing Sciences and Software Engineering

Abstract

Multinomial Logit Model can be implemented in a Qualitative Choice Situation in order to generate an optimal pricing policy. The analysis is based on a simple case where the seller has to define the best combination of prices to offer for two products, considering a single-type of costumers. Three alternative approaches are compared for the computation: Multinomial Logit, Binary Logit, and Two Stage or Logit-Logit. The analysis of the problem involves three phases: Simulation of sales data, Estimation of parameters and Price optimization.

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Author information

Authors and Affiliations

  1. Department of Information Systems, The University of Texas at Austin – Jackson School of Geosciences. University of Chile –School of Business Administration, Texas

    Luciano Correa

Authors
  1. Luciano Correa
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Editor information

Editors and Affiliations

  1. University of Bridgeport, School of Engineering, 221 University Avenue, Bridgeport, CT 06604, USA

    Khaled Elleithy (Prof.) (Prof.)

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© 2008 Springer Science+Business Media B.V.

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Correa, L. (2008). Qualitative Choice and Logit Models Applied to Price Optimization. In: Elleithy, K. (eds) Innovations and Advanced Techniques in Systems, Computing Sciences and Software Engineering. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-8735-6_4

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  • DOI: https://doi.org/10.1007/978-1-4020-8735-6_4

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-1-4020-8734-9

  • Online ISBN: 978-1-4020-8735-6

  • eBook Packages: Computer ScienceComputer Science (R0)

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