A BILEVEL APPROACH TO OPTIMAL PRICING

摘要

Whereas pricing models have in the past often been approached from a purely academic standpoint, optimal pricing is nowadays considered as a central financial and operational tool in several industries. The optimal pricing problem, involving two decision makers acting non cooperatively and in a sequential way, can be adequately modelled as a bilevel program. In this paper we present a theoretical and algorithmic study of this class of bilevel problems, devoting a special attention to the problem of setting profit maximizing tariffs on a transportation network.