The Threshold Effects on Consumer Choice and Pricing Decisions

Published Online:https://doi.org/10.1287/msom.2020.0948

References

  • Ahumada A, Ulku L (2018) Luce rule with limited consideration. Math. Social Sci. 93:52–56.CrossrefGoogle Scholar
  • Anderson SP, de Palma A, Thisse J (1992) Discrete Choice Theory of Product Differentiation (MIT Press, Cambridge, MA).CrossrefGoogle Scholar
  • Bernstein F, Federgruen A (2004) A general equilibrium model for industries with price and service competition. Oper. Res. 52(6):868–886.LinkGoogle Scholar
  • De los Santos B, Hortacsu A, Wildenbeest MR (2012) Testing models of consumer search using data on web browsing and purchasing behavior. Amer. Econom. Rev. 102(2):2955–2980.CrossrefGoogle Scholar
  • Echenique F, Saito K (2019) General Luce model Econom. Theory 68:811–826.CrossrefGoogle Scholar
  • Federgruen A, Yang N (2009) Competition under generalized attraction models: Applications to quality competition under yield uncertainty. Management Sci. 55(12):2028–2043.LinkGoogle Scholar
  • Flores A, Berbeglia G, Hentenryck PV (2017) Assortment and price optimization under the two-stage Luce model. Working paper, The Australian National University.Google Scholar
  • Gallego G, Li A (2017) Attention, consideration then selection choice model. Working paper.Google Scholar
  • Gallego G, Wang R (2014) Price optimization and competition for multi-products under the nested logit model with product-differentiated price coefficients. Oper. Res. 62(2):450–461.LinkGoogle Scholar
  • Gallego G, Wang R (2019) Threshold utility model with applications to retailing and discrete choice models. Working paper, Hong Kong University of Science and Technology.Google Scholar
  • Gallego G, Li A, Truong VA, Wang X (2020) Approximation algorithms for product framing and pricing. Oper. Res. 68(1):134–160.LinkGoogle Scholar
  • Gupta V, Cakanyildirim M 2019. Pricing for satisficing customers favoring products or availability while incorporating stockouts. Working paper, Penn State Erie.Google Scholar
  • Hauser JR (2014) Consideration-set heuristics. J. Bus. Res. 67(8):1688–1699.CrossrefGoogle Scholar
  • Hauser JR, Wernerfelt B (1990) An evaluation cost model of consideration sets. J. Consumer Res. 16(4):393–408.CrossrefGoogle Scholar
  • Heese HS, Martinez-de-Albeniz V (2018) Effects of assortment breadth announcements on manufacturer competition. Manufacturing Service Oper. Management 20(2):302–316.LinkGoogle Scholar
  • Hopp WJ, Xu X (2005) Product line selection and pricing with modularity in design. Management Sci. 7(3):172–187.Google Scholar
  • Huh WT, Li H (2015) Pricing under the nested attraction model with a multi-stage choice structure. Oper. Res. 63(4):840–850.LinkGoogle Scholar
  • Ke C, Wang R (2021) Cross-category retailing management: Substitution and complementarity. Manufacturing Service Oper. Management. Forthcoming.LinkGoogle Scholar
  • Li H, Huh WT (2011) Pricing multiple products with the multinomial logit and nested logit models: Concavity and implications. Manufacturing Service Oper. Management 13(4):549–564.LinkGoogle Scholar
  • Li G, Rusmevichientong P, Topaloglu H (2015) The d-level nested logit model: Assortment and price optimization problems. Oper. Res. 63(2):325–341.LinkGoogle Scholar
  • Li H, Webster S, Yu G (2020) Product design under multinomial logit choices: Optimization of quality and prices in an evolving product line. Manufacturing Service Oper. Management 22(5):1011—1025.Google Scholar
  • Li H, Webster S, Mason N, Kempf K (2019) Product-line pricing under discrete mixed multinomial logit demand.Manufacturing Service Oper. Management 21(1):14–28.LinkGoogle Scholar
  • Liu L, Dukes A (2013) Consideration set formation with multiproduct firms: The case of within-firm and across-firm evaluation costs. Management Sci. 59(8):1871–1886.LinkGoogle Scholar
  • Luce RD (1959) Individual Choice Behavior: A Theoretical Analysis (Wiley, New York).Google Scholar
  • Manzini P, Mariott M (2014) Stochastic choice and consideration sets. Econometrica 82(3):1153–1176.CrossrefGoogle Scholar
  • Masatlioglu Y, Nakajima D, Ozbay EY (2012) Revealed attention. Amer. Econom. Rev. 102(5):2183–2205.CrossrefGoogle Scholar
  • McFadden D (1974) Conditional logit analysis of qualitative choice behavior. Zarembka P, ed. Frontiers in Econometrics (Academic Press, New York), 105–142.Google Scholar
  • Payne JW (1976) Task complexity and contingent processing in decision making: An information search and protocol analysis. Organ. Behav. Human Performance 16(2):366–387.CrossrefGoogle Scholar
  • Roberts J, Lattin M (1991) Development and testing of a model consideration set composition. J. Marketing Res. 28(4):429–440.CrossrefGoogle Scholar
  • Spiller SA (2011) Opportunity cost consideration. J. Consumer Res. 38(4):595–610.CrossrefGoogle Scholar
  • Stigler GJ (1961) The economics of information. J. Political Econom. 69(3):213–225.CrossrefGoogle Scholar
  • Vives X (2001) Oligopoly Pricing: Old Ideas and New Tools (MIT Press, Cambridge, MA).Google Scholar
  • Wang R (2018) Consumer choice with consideration set: Threshold Luce model. Working paper, Johns Hopkins University, Baltimore.Google Scholar
  • Wang R, Sahin O (2018) The impact of consumer search cost on assortment planning and pricing. Management Sci. 64(8):3649–3666.LinkGoogle Scholar
  • Wang R, Dada M, Sahin O (2019) Pricing ancillary service subscriptions. Management Sci. 65(10):4712–4732.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.