Abstract—We study the pricing of customized bundles, where a firm sets a bundle price that depends on the size of the bundle, not on its individual products. With the objective of maximizing the firm's profit, we formulate a nonlinear mixed-integer program based on a prior model from the literature. A linear mixed-integer formulation is developed which effectively enables an exact solution to the problem
Index Terms—Bundling, mixed-integer programming, pricing.
Ameera Ibrahim is with the Business Analytics Department, School of Economics and Business Administration, Saint Mary’s College of California, United States of America (e-mail: ai7@stmarys-ca.edu).
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Cite: Ameera Ibrahim, "Optimal Customized Bundle Pricing," International Journal of Modeling and Optimization vol. 9, no. 4, pp. 234-237, 2019.
