On a Variation of Two-Part Tariff Pricing of Services: A Data-Driven Approach

Published Online:https://doi.org/10.1287/msom.2021.1069

References

  • Afeche P, Baron O, Milner J, Roet-Green R (2019) Pricing and prioritizing time-sensitive customers with heterogeneous demand rates. Oper. Res. 67(4):1184–1208.AbstractGoogle Scholar
  • Alberini A (1995) Optimal designs for discrete choice contingent valuation surveys: Single-bound, double-bound, and bivariate models. J. Environ. Econom. Management 28(3):287–306.CrossrefGoogle Scholar
  • Bernstein F, Marx LM (2005) Reservation profit levels and the division of supply chain profit. Working paper, Duke University, Durham, NC.Google Scholar
  • Cachon GP, Lariviere MA (2005) Supply chain coordination with revenue-sharing contracts: strengths and limitations. Management Sci. 51(1):30–44.LinkGoogle Scholar
  • Cameron TA, James MD (1987) Estimating willingness to pay from survey data: An alternative pre-test-market evaluation procedure. J. Marketing Res. 24(4):389–395.CrossrefGoogle Scholar
  • Chen B, Chao X, Shi C (2021) Nonparametric learning algorithms for joint pricing and inventory control with lost sales and censored demand. Math. Oper. Res. 46(2):726–756.Google Scholar
  • Dag A, Topuz K, Oztekin A, Bulur S, Megahed FM (2016) A probabilistic data-driven framework for scoring the preoperative recipient-donor heart transplant survival. Decision Support Systems 86:1–12.CrossrefGoogle Scholar
  • Dempster AP, Laird NM, Rubin DB (1977) Maximum likelihood from incomplete data via the EM algorithm. J. Roy. Statist. Soc. B Methodological 39(1):1–22.Google Scholar
  • Dobson G, Kalish S (1988) Positioning and pricing a product line. Marketing Sci. 7(2):107–125.LinkGoogle Scholar
  • Essegaier S, Gupta S, Zhang ZJ (2002) Pricing access services. Marketing Sci. 21(2):139–159.LinkGoogle Scholar
  • Feldstein MS (1972) Equity and efficiency in public sector pricing: The optimal two-part tariff. Quart. J. Econom. 86(2):176–187.CrossrefGoogle Scholar
  • Fibich G, Klein R, Koenigsberg O, Muller E (2017) Optimal three-part tariff plans. Oper. Res. 65(5):1177–1189.LinkGoogle Scholar
  • Gallego G, Özer Ö (2002) Optimal use of demand information in supply chain management. Supply Chain Structures, International Series in Operations Research & Management Science, vol. 42 (Springer, Boston), 119–160.CrossrefGoogle Scholar
  • Hu K, Acimovic J, Erize F, Thomas DJ, Van Mieghem JA (2018) Forecasting new product life cycle curves: Practical approach and empirical analysis: Finalist–2017 M&SOM Practice-Based Research Competition. Manufacturing Service Oper. Management 21(1):66–85.LinkGoogle Scholar
  • Huh WT, Rusmevichientong P (2009) A nonparametric asymptotic analysis of inventory planning with censored demand. Math. Oper. Res. 34(1):103–123.LinkGoogle Scholar
  • Huh WT, Levi R, Rusmevichientong P, Orlin JB (2011) Adaptive data-driven inventory control with censored demand based on Kaplan-Meier estimator. Oper. Res. 59(4):929–941.LinkGoogle Scholar
  • Iyengar R, Gupta S (2009) Nonlinear pricing. Rao VR, ed. Handbook of Pricing Research in Marketing (Edward Elgar Publishing, Cheltenham, UK), 355–383.CrossrefGoogle Scholar
  • Jedidi K, Zhang ZJ (2002) Augmenting conjoint analysis to estimate consumer reservation price. Management Sci. 48(10):1350–1368.LinkGoogle Scholar
  • Kaplan EL, Meier P (1958) Nonparametric estimation from incomplete observations. J. Amer. Statist. Assoc. 53(282):457–481.CrossrefGoogle Scholar
  • Kohli R, Mahajan V (1991) A reservation-price model for optimal pricing of multiattribute products in conjoint analysis. J. Marketing Res. 28(3):347–354.CrossrefGoogle Scholar
  • Kök AG, Fisher ML (2007) Demand estimation and assortment optimization under substitution: Methodology and application. Oper. Res. 55(6):1001–1021.LinkGoogle Scholar
  • Laird N (1978) Nonparametric maximum likelihood estimation of a mixing distribution. J. Amer. Statist. Assoc. 73(364):805–811.CrossrefGoogle Scholar
  • Lambrecht A, Seim K, Skiera B (2007) Does uncertainty matter? Consumer behavior under three-part tariffs. Marketing Sci. 26(5):698–710.LinkGoogle Scholar
  • Lewis WA (1941) The two-part tariff. Economica 8(31):249–270.CrossrefGoogle Scholar
  • Littlechild SC (1975) Common costs, fixed charges, clubs and games. Rev. Econom. Stud. 42(1):117–124.CrossrefGoogle Scholar
  • Liu J-T, Hammitt JK, Wang J-D, Liu J-L (2000) Mother’s willingness to pay for her own and her child’s health: A contingent valuation study in Taiwan. Health Econom. 9(4):319–326.CrossrefGoogle Scholar
  • Miller KM, Hofstetter R, Krohmer H, Zhang ZJ (2011) How should consumers’ willingness to pay be measured? An empirical comparison of state-of-the-art approaches. J. Marketic Res. 48(1):172–184.CrossrefGoogle Scholar
  • Mitchell BM (1978) Optimal pricing of local telephone service. Amer. Econom. Rev. 68(4):517–537.Google Scholar
  • Musalem A, Olivares M, Bradlow ET, Terwiesch C, Corsten D (2010) Structural estimation of the effect of out-of-stocks. Management Sci. 56(7):1180–1197.LinkGoogle Scholar
  • Ng Y-K, Weisser M (1974) Optimal pricing with a budget constraint–The case of the two-part tariff. Rev. Econom. Stud. 41(3):337–345.CrossrefGoogle Scholar
  • Oi WY (1971) A Disneyland dilemma: Two-part tariffs for a Mickey Mouse monopoly. Quart. J. Econom. 85(1):77–96.CrossrefGoogle Scholar
  • Oliveira FS, Ruiz C, Conejo AJ (2013) Contract design and supply chain coordination in the electricity industry. Eur. J. Oper. Res. 227(3):527–537.CrossrefGoogle Scholar
  • Rahmani M, Roels G, Karmarkar US (2017) Collaborative work dynamics in projects with co-production. Production Oper. Management 26(4):686–703.CrossrefGoogle Scholar
  • Rusmevichientong P, Van Roy B, Glynn PW (2006) A nonparametric approach to multiproduct pricing. Oper. Res. 54(1):82–98.LinkGoogle Scholar
  • Savaskan RC, Bhattacharya S, Van Wassenhove LN (2004) Closed-loop supply chain models with product remanufacturing. Management Sci. 50(2):239–252.LinkGoogle Scholar
  • Schlereth C, Stepanchuk T, Skiera B (2010) Optimization and analysis of the profitability of tariff structures with two-part tariffs. Eur. J. Oper. Res. 206(3):691–701.CrossrefGoogle Scholar
  • Schmalensee R (1981) Monopolistic two-part pricing arrangements. Bell J. Econom. 12(2):445–466.CrossrefGoogle Scholar
  • Shioda R, Tunçel L, Myklebust TGJ (2011) Maximum utility product pricing models and algorithms based on reservation price. Comput. Optim. Appl. 48(2):157–198.CrossrefGoogle Scholar
  • Tsay AA, Nahmias S, Agrawal N (1999) Modeling supply chain contracts: A review. Tayur S, Ganeshan R, Magazine M, eds. Quantitative Models for Supply Chain Management, International Series in Operations Research & Management Science, vol. 17 (Springer, Boston), 299–336.CrossrefGoogle Scholar
  • Turnbull BW (1974) Nonparametric estimation of a survivorship function with doubly censored data. J. Amer. Statist. Assoc. 69(345):169–173.CrossrefGoogle Scholar
  • Van Ryzin G, Vulcano G (2015) A market discovery algorithm to estimate a general class of nonparametric choice models. Management Sci. 61(2):281–300.LinkGoogle Scholar
  • Varian HR (1985) Price discrimination and social welfare. Amer. Econom. Rev. 75(4):870–875.Google Scholar
  • Vulcano G, Van Ryzin G, Ratliff R (2012) Estimating primary demand for substitutable products from sales transaction data. Oper. Res. 60(2):313–334.LinkGoogle Scholar
  • Wu CFJ (1983) On the convergence properties of the EM algorithm. Ann. Statist. 11(1):95–103.CrossrefGoogle Scholar
  • Yilmaz Ö, Pekgün P, Ferguson M (2017) Would you like to upgrade to a premium room? Evaluating the benefit of offering standby upgrades. Manufacturing Service Oper. Management 19(1):1–18.LinkGoogle Scholar
  • Zhu Z, Zhang J, Ye Y (2013) Newsvendor optimization with limited distribution information. Optim. Methods Software 28(3):640–667.CrossrefGoogle 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.