Optimal product line pricing in the presence of budget-constrained consumers

Stefan Mayer and Claudius Steinhardt

European Journal of Operational Research, 2016, vol. 248, issue 1, 219-233

Abstract: The product line pricing problem is generally defined as a seller's task to determine the optimal prices for each product in a product line while accounting for both demand-side and supply-side restrictions. In this paper, we contribute to the existing literature by incorporating consumers’ budget considerations into the seller's optimisation problem. Despite playing an important role in many applications, such as the pricing of tickets for sporting or theatre seasons, budget constraints have not been considered in the academic literature in the context of product line pricing to date.

Keywords: Pricing; Mixed-integer programming; Branch-and-bound; Knapsack constraints (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221715006396
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:248:y:2016:i:1:p:219-233

DOI: 10.1016/j.ejor.2015.07.006

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().