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Dynamic Games and Applications Seminar
Pricing, Assortment, and Inventory Decisions under Nested Logit Demand and Equal Profit Margins
Bacel Maddah – American University of Beirut, Lebanon
We consider the interdependent decisions on assortment, inventory and pricing of substitutable products under a nested logit consumer choice, and a single-period, newsvendor-type, supply setting. This applies to fashion goods. We assume that all products have equal profit margins. Under a Taylor series-type approximation, we derive several concavity properties of the expected profit function, and gain insights into the structure of the optimal solution. Our results allow developing an efficient, single-variable search, heuristic for jointly deciding on assortment, pricing, and inventory decisions. We argue that our approach continues to hold under more general consumer choice.
![Georges Zaccour](/system/assets/000/000/499/499.ZaccourG_card.jpg)
Georges Zaccour
organizer
Location
Hybrid activity at GERAD
Zoom et salle 4488
Pavillon André-Aisenstadt
Campus de l'Université de Montréal
2920, chemin de la Tour
Montréal Québec H3T 1J4
Canada
Pavillon André-Aisenstadt
Campus de l'Université de Montréal
2920, chemin de la Tour
Montréal Québec H3T 1J4
Canada