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Problem definition. This paper examines the impact of non-randomness on random choice models, and then studies various operations problems under the new discrete choice models. Academic/Practical Relevance. The literature often assumes that the random utility components follow some i.i.d....
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We study the so-called sum-product ratio problem, under which the numerate is the sum of numbers in a subset and the denominator is the product of numbers in the same subset. Unlike the sum-sum ratio problem, which corresponds to the assortment problem under the multinomial logit model, the...
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In this paper, we consider the joint effects of product substitution and endogenized market size. Under the substitution effects, a product's demand may be cannibalized by other substitutable products; while the market size, measured by the number of customers who are interested in one of the...
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We investigate heterogeneous customer choice behavior in the presence of main products, ancillary services with options of pay-per-use and subscription, as well as the outside option. The willingness to pay for service subscription is derived as a closed-form expression, which enables us to...
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Network externality arises when the utility of a product depends not only on its attributes, but also on the number of consumers who purchase the same product. In this paper, we propose and analyze consumer choice models that endogenize such network externality. We first characterize the choice...
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