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We consider a seller’s problem of determining revenue-maximizing prices for an assortment of products that exhibit network effects. Customers make purchase decisions according to a multinomial logit (MNL) customer choice model, modified — to incorporate network effects — so that the...
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We analyze the assortment optimization problem faced by a monopolistic firm selling n substitutable products in both store and online channels. In our problem, a subset of products (the assortment) are offered in store while all products are sold online. Compared to purchasing in store,...
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In this paper, we study a dynamic multinomial logit choice model with network effect (we call it the "dynamic model'' in short). In our model, a continuum of customers stay in a market for an infinite horizon. We adopt a random utility model to capture customer's valuation of each product in...
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