cff-version: 1.2.0
abstract: "Price differentiation is a common strategy for many operators. We study a static multiproduct price optimization problem with demand given by a continuous mixed multinomial logit model. To solve this new problem, we design an efficient iterative optimization algorithm that asymptotically converges to the optimal solution. To this end, a linear optimization (LO) problem is formulated, based on the trust-region approach, to find a "good" feasible solution and approximate the problem from below. Another LO problem is designed using piecewise linear relaxations to approximate the optimization problem from above. Then, we develop a new branching method to tighten the optimality gap."
authors:
  - family-names: Marandi
    given-names: Ahmadreza
    orcid: "https://orcid.org/0000-0003-4205-1167"
  - family-names: Lurkin
    given-names: Virginie
title: "LiBiT algorithm to solve static pricing problems under mixed multinomial logit demand"
keywords:
version: 1
identifiers:
  - type: doi
    value: 10.4121/12852824.v1
license: CC BY-NC 4.0
date-released: 2020-08-24