A company is considering an assortment problem of the following 10 products with zero marginal cost. The price is given
Posted: Wed May 18, 2022 9:29 pm
A company is considering an assortment problem of the following
10 products with zero marginal cost. The price is given in the
second row. According to the MNL model, the company has
estimated the parameters 𝜇 in the third row. Use the MNL
model to
find the optimal set of products to offer to customers.
Product i
1
2
3
4
5
6
7
8
9
10
Price 𝑝i
600
550
475
400
300
280
240
200
185
175
𝜇i
0.407
0.438
0.490
0.549
0.638
0.657
0.698
0.741
0.758
0.769
10 products with zero marginal cost. The price is given in the
second row. According to the MNL model, the company has
estimated the parameters 𝜇 in the third row. Use the MNL
model to
find the optimal set of products to offer to customers.
Product i
1
2
3
4
5
6
7
8
9
10
Price 𝑝i
600
550
475
400
300
280
240
200
185
175
𝜇i
0.407
0.438
0.490
0.549
0.638
0.657
0.698
0.741
0.758
0.769