Simultaneous and Sequential Choice Behavior with Search Cost: Modeling, Optimization and Estimation-论坛/学术报告-上海交通大学中银科技金融学院

Abstract

We propose a unified framework to investigate operations management problems for firms who sell multiple products to consumers with simultaneous and sequential search and choice behavior. We first characterize consumer purchase decision in the presence of search cost, substitution and complementary effects. Then, we develop optimal or near-optimal solutions for assortment planning and pricing for firms in different business scenarios. Our empirical study shows that the new solution framework can improve the goodness-of-fit and prediction accuracy for consumer choice, sales and revenue in the various scenarios, including multiple stores in different locations. Failure to account for the features in consumer search and choice may lead to substantial losses in operations management.

Guest Bio

Dr. Ruxian Wang is a Professor with tenure at Johns Hopkins University, Carey Business School. Before returning to academia, he worked in Hewlett-Packard Company for several years as a research scientist. He received Ph.D. from Columbia University. His research and teaching interests include operations management, revenue management, pricing, discrete choice models, data-driven decision making. His articles appeared in several flagship journals in his field, such as Management Science, Manufacturing & Service Operations Management, Operations Research, Production and Operations Management.