Joint Design and Pricing on a Network
成果类型：
Article
署名作者：
Brotcorne, Luce; Labbe, Martine; Marcotte, Patrice; Savard, Gilles
署名单位：
Universite Libre de Bruxelles; Universite Polytechnique Hauts-de-France; Universite Libre de Bruxelles; Universite de Montreal; Universite de Montreal; Universite de Montreal; Polytechnique Montreal; Universite de Montreal; Polytechnique Montreal
刊物名称：
OPERATIONS RESEARCH
ISSN/ISSBN：
0030-364X
DOI：
10.1287/opre.1080.0617
发表日期：
2008
页码：
1104-1115
关键词：
摘要：
To optimize revenue, service firms must integrate within their pricing policies the rational reaction of customers to their price schedules. In the airline or telecommunication industry, this process is all the more complex due to interactions resulting from the structure of the supply network. In this paper, we consider a streamlined version of this situation where a firm's decision variables involve both prices and investments. We model this situation as a joint design and pricing problem that we formulate as a mixed-integer bilevel program, and whose properties are investigated. In particular, we take advantage of a feature of the model that allows the development of an algorithmic framework based on Lagrangean relaxation. This approach is entirely novel, and numerical results show that it is capable of solving problems of significant sizes.