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.

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