Mining competitively-priced bundle configurations
We examine the bundle configuration problem in the presence of competition. Given a competitor's bundle configuration and pricing, we determine what to bundle together, and at what prices, to maximize the target firm's revenue. We highlight the difficulty in pricing bundles and propose a s...
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
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Institutional Knowledge at Singapore Management University
2022
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| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/sis_research/7774 https://ink.library.smu.edu.sg/context/sis_research/article/8777/viewcontent/bigdata22b.pdf |
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| Institution: | Singapore Management University |
| Language: | English |
| Summary: | We examine the bundle configuration problem in the presence of competition. Given a competitor's bundle configuration and pricing, we determine what to bundle together, and at what prices, to maximize the target firm's revenue. We highlight the difficulty in pricing bundles and propose a scalable alternative and an efficient search heuristic to refine the approximate prices. Furthermore, we extend the heuristics proposed by previous work to accommodate the presence of a competitor. We analyze the effectiveness of our proposed models through experimentation on real-life ratings-based preference data. |
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