We study firms that sell multiple substitutable products and customers whose purchase behavior follows a Nested Logit model, of which the Multinomial Logit model is a special case. Customers make purchasing decision sequentially under the Nested Logit model: they first select a nest of products...

This paper investigates the threshold effects on the consideration set formation for consumers and the associated pricing decisions for firms. In the class of random utility maximization choice models, consumers choose the alternative with the largest utility after resolving utility...

In this paper, we develop an integrated framework to study a firm's joint decisions on product price, quality and service duration in a variety of monopolistic and competitive scenarios. Product price, quality, and ancillary service (such as maintenance and factory warranty) are arguably among...

We consider an assortment optimization problem where a retailer chooses a set of substitutable products to maximize the total expected revenue or profit subject to a capacity constraint. The customer purchase behavior follows the generalized attraction model (GAM), of which the multinomial logit...

Problem Definition: Reference prices arise as price expectations against which consumers evaluate products in their purchase scenarios. We investigate what will happen when prospect theory (e.g., reference prices) meets consumer choice models from the perspectives of both the consumers and the...

Problem Definition: We develop a framework to study purchase behavior from distinct segments of heterogeneous customers, and to optimize prices for different policies in a sports ticket market with multiplesales channels.Academic/Practical Relevance: Sports teams face challenges maintaining or...