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Full-Text Articles in Other Economics

Customized Bundle Pricing For Information Goods: A Nonlinear Mixed-Integer Programming Approach, Shin-Yi Wu, Lorin. M. Hitt, Pei-Yu Chen, G. Anand Anandalingan Mar 2008

Customized Bundle Pricing For Information Goods: A Nonlinear Mixed-Integer Programming Approach, Shin-Yi Wu, Lorin. M. Hitt, Pei-Yu Chen, G. Anand Anandalingan

Operations, Information and Decisions Papers

This paper proposes using nonlinear mixed-integer programming to solve the customized bundle-pricing problem in which consumers are allowed to choose up to N goods out of a larger pool of J goods. Prior work has suggested that this mechanism has attractive features for the pricing of information and other low-marginal cost goods. Although closed-form solutions exist for this problem for certain cases of consumer preferences, many interesting scenarios cannot be easily handled without a numerical solution procedure. In this paper, we investigate the efficiency gains created by customized bundling over the alternatives of pure bundling or individual sale under different ...


Supermodularity And Tipping, Geoffrey Heal, Howard Kunreuther Jun 2006

Supermodularity And Tipping, Geoffrey Heal, Howard Kunreuther

Operations, Information and Decisions Papers

We model tipping as a game-theoretic phenomenon and investigate the connection between supermodular games, tipping of equilibria and cascading, and apply the results to issues that arise in the context of homeland security and computer security. We show that tipping and cascading can occur in supermodular games and that "increasing differences"is a sufficient condition for tipping. Supermodularity and tipping of equilibria are closely related. We relate our results to Schelling’s early work on tipping.


Understanding Under - And Over - Reaction, Cade Massey, George Wu Feb 2003

Understanding Under - And Over - Reaction, Cade Massey, George Wu

Operations, Information and Decisions Papers

No abstract provided.