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Bundle size pricing (BSP) is a multi-dimensional selling mechanism where the firm prices the size of the bundle rather than the different possible combinations of bundles. In BSP, the firm offers the customer a menu of different sizes and prices. The customer then chooses the size that maximizes...
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Customer switching costs are an important factor in account-based services such as telecommunications, financial, insurance and brokerage services. In these businesses, existing customers incur significant costs if they switch to another provider. Such costs include physical configuration and...
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Ride-hailing platforms update prices dynamically to efficiently balance supply and demand. But rapidly changing prices create incentives for riders to wait for high prices to drop. When supply builds up and prices do eventually drop, these patient customers may request en masse, causing a sharp...
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We consider the problem faced by a firm that receives highly differentiated products in an online fashion. The firms needs to price these products to sell them to its customer base. Products are described by vectors of features and the market value of each product is linear in the values of the...
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