A zero-sum game approach for estimating cross-elasticity price effects
| Autor: | Steve Berman, Michael Greene, Leandro L DalleMule |
|---|---|
| Rok vydání: | 2011 |
| Předmět: |
Demand management
Computer Science::Computer Science and Game Theory Economics and Econometrics Mathematical optimization Cross elasticity of demand Revenue management Operations research Strategy and Management Price optimization symbols.namesake Zero-sum game Nash equilibrium Economics symbols Yield management Business and International Management Finance Cannibalization |
| Zdroj: | Journal of Revenue and Pricing Management. 11:355-363 |
| ISSN: | 1477-657X 1476-6930 |
| Popis: | Too often, product cannibalization effects are ignored or neglected by modelers trying to forecast demand, quantify price elasticities and ultimately optimize prices. The main reason is that, although well understood, cannibalization effects are hard to measure – and even harder to include in optimization algorithms. Given data-scarcity issues with cross-elasticities, the following analysis proposes an alternative solution to the computationally intensive, commonly infeasible problem of dealing with cannibalization effects in price optimization problems. Although the proposed solution approximates cannibalization effects, it can deliver a result in reasonable computational time frames by leveraging a theoretical game framework for calculating Nash equilibrium in zero-sum games. |
| Databáze: | OpenAIRE |
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