Journal article

Assortment Optimisation Under a General Discrete Choice Model: A Tight Analysis of Revenue-Ordered Assortments

G Berbeglia, G Joret

Algorithmica: an international journal in computer science | Springer (part of Springer Nature) | Published : 2020

Abstract

The assortment problem in revenue management is the problem of deciding which subset of products to offer to consumers in order to maximise revenue. A simple and natural strategy is to select the best assortment out of all those that are constructed by fixing a threshold revenue π and then choosing all products with revenue at least π. This is known as the revenue-ordered assortments strategy. In this paper we study the approximation guarantees provided by revenue-ordered assortments when customers are rational in the following sense: the probability of selecting a specific product from the set being offered cannot increase if the set is enlarged. This rationality assumption, known as regula..

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University of Melbourne Researchers

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