Maximum Utility Product Pricing Models and Algorithms Based on Reservation Prices

We consider a revenue management model for pricing a product line with several customer segments under the assumption that customers’ product choices are determined entirely by their reservation prices. We highlight key mathematical properties of the maximum utility model and formulate it as a mixed-integer programming problem, design heuristics and valid cuts. We further present … Read more

Probabilistic Choice Models for Product Pricing using Reservation Prices

We consider revenue management models for pricing a product line with several customer segments, working under the assumption that every customer’s product choice is determined entirely by their reservation price. We model the customer choice behavior by several probabilistic choice models and formulate the problems as mixed-integer programming problems. We study special properties of these … Read more

Clustering via Minimum Volume Ellipsoids

We propose minimum volume ellipsoids (MVE) clustering as an alternate clustering technique to k-means clustering for Gaussian data points and explore its value and practicality. MVE clustering allocates data points into clusters that minimizes the total volumes of each cluster’s covering ellipsoids. Motivations for this approach include its scale-invariance, its ability to handle asymmetric and … Read more