Pricing, Assortment, and Inventory Decisions under Nested Logit Demand and Equal Profit Margins

Pricing, Assortment, and Inventory Decisions under Nested Logit Demand and Equal Profit Margins

Explore a seminar on dynamic games and applications focusing on pricing, assortment, and inventory decisions under nested logit demand and equal profit margins. Delve into the interdependent decision-making process for substitutable products in a single-period, newsvendor-type supply setting, particularly applicable to fashion goods. Examine the derivation of concavity properties for the expected profit function using a Taylor series-type approximation, gaining insights into the optimal solution structure. Learn about an efficient, single-variable search heuristic for joint decision-making on assortment, pricing, and inventory. Discover how this approach can be extended to more general consumer choice models.