Management Science
An application of DEA to measure branch cross selling efficiency
Computers and Operations Research - Special issue on data envelopment analysis
The effects of selling packaged goods on inventory decisions
Management Science
Revenue Management: Research Overview and Prospects
Transportation Science
Combined Pricing and Inventory Control Under Uncertainty
Operations Research
Commissioned Paper: An Overview of Pricing Models for Revenue Management
Manufacturing & Service Operations Management
The Dynamic Pricing Problem from a Newsvendor's Perspective
Manufacturing & Service Operations Management
Dynamic Conversion Behavior at E-Commerce Sites
Management Science
Revenue Management for Parallel Flights with Customer-Choice Behavior
Operations Research
A Partially Observed Markov Decision Process for Dynamic Pricing
Management Science
Supply Chain Choice on the Internet
Management Science
Dynamic Pricing Strategies for Multiproduct Revenue Management Problems
Manufacturing & Service Operations Management
Relationships Among Three Assumptions in Revenue Management
Operations Research
Game theory and the practice of revenue management
Proceedings of the Behavioral and Quantitative Game Theory: Conference on Future Directions
Dynamic packaging in e-retailing with stochastic demand over finite horizons: A Q-learning approach
Expert Systems with Applications: An International Journal
Technical Note---Personalized Dynamic Pricing of Limited Inventories
Operations Research
When Promotions Meet Operations: Cross-Selling and Its Effect on Call Center Performance
Manufacturing & Service Operations Management
Dynamic Pricing of Limited Inventories When Customers Negotiate
Operations Research
Expert Systems with Applications: An International Journal
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We consider the problem of dynamically cross-selling products (e.g., books) or services (e.g., travel reservations) in the e-commerce setting. In particular, we look at a company that faces a stream of stochastic customer arrivals and may offer each customer a choice between the requested product and a package containing the requested product as well as another product, what we call a “packaging complement.” Given consumer preferences and product inventories, we analyze two issues: (1) how to select packaging complements, and (2) how to price product packages to maximize profits. We formulate the cross-selling problem as a stochastic dynamic program blended with combinatorial optimization. We demonstrate the state-dependent and dynamic nature of the optimal package selection problem and derive the structural properties of the dynamic pricing problem. In particular, we focus on two practical business settings: with (the Emergency Replenishment Model) and without (the Lost-Sales Model) the possibility of inventory replenishment in the case of a product stockout. For the Emergency Replenishment Model, we establish that the problem is separable in the initial inventory of all products, and hence the dimensionality of the dynamic program can be significantly reduced. For both models, we suggest several packaging/pricing heuristics and test their effectiveness numerically.