Mathematical structure of a bilevel strategic pricing model

作者:Marcotte, Patrice*; Savard, Gilles; Zhu, Daoli
来源:European Journal of Operational Research, 2009, 193(2): 552-566.
DOI:10.1016/j.ejor.2005.02.081

摘要

This paper is concerned with the characterization of optimal strategies for a service firm acting in an oligopolistic environment. The decision problem is formulated as a leader-follower game played on a transportation network, where the leader firm selects a revenue-maximizing price schedule that takes explicitly into account the rational behavior of the customers. In the context of our analysis, the follower's problem is associated with a competitive network market involving non atomic customer groups. The resulting bilevel model can therefore be viewed as a model of product differentiation subject to structural network constraints.