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Joint design and pricing on a network
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Document type :
Article dans une revue scientifique
DOI :
10.1287/opre.1080.0617
Title :
Joint design and pricing on a network
Author(s) :
Brotcorne, Luce [Auteur] refId
Laboratoire d'Automatique, de Mécanique et d'Informatique industrielles et Humaines - UMR 8201 [LAMIH]
Labbé, Martine [Auteur]
Graphes et Optimisation Mathématique [Bruxelles] [GOM]
Marcotte, Patrice [Auteur]
Savard, Gilles [Auteur]
Journal title :
Operations Research
Pages :
1104-1115
Publisher :
INFORMS
Publication date :
2008
ISSN :
0030-364X
HAL domain(s) :
Informatique [cs]/Recherche opérationnelle [cs.RO]
English abstract : [en]
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 ...
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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.Show less >
Language :
Anglais
Peer reviewed article :
Oui
Audience :
Internationale
Popular science :
Non
Comment :
Language of publication: en
Collections :
  • Centre de Recherche en Informatique, Signal et Automatique de Lille (CRIStAL) - UMR 9189
Source :
Harvested from HAL
Université de Lille

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