{"title":"Bounds on revenue for the random consideration set choice model","authors":"Wentao Lu","doi":"10.1016/j.orl.2024.107070","DOIUrl":null,"url":null,"abstract":"<div><p>The random consideration set choice model is a recently proposed choice model that can capture the stochastic choice behavior of consumers. One advantage of the random consideration set choice model is that it can accommodate some phenomena that cannot be explained by the multinomial logit model<span>. In this paper, we prove revenue bounds when the attention probabilities and preference order over products change for the random consideration set model. The bounds proposed can be used to control revenue differences when consumers' preference over product changes and can be useful for settings like online assortment optimization with a non-stationary environment.</span></p></div>","PeriodicalId":54682,"journal":{"name":"Operations Research Letters","volume":"53 ","pages":"Article 107070"},"PeriodicalIF":0.8000,"publicationDate":"2024-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Operations Research Letters","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0167637724000063","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"OPERATIONS RESEARCH & MANAGEMENT SCIENCE","Score":null,"Total":0}
引用次数: 0
Abstract
The random consideration set choice model is a recently proposed choice model that can capture the stochastic choice behavior of consumers. One advantage of the random consideration set choice model is that it can accommodate some phenomena that cannot be explained by the multinomial logit model. In this paper, we prove revenue bounds when the attention probabilities and preference order over products change for the random consideration set model. The bounds proposed can be used to control revenue differences when consumers' preference over product changes and can be useful for settings like online assortment optimization with a non-stationary environment.
期刊介绍:
Operations Research Letters is committed to the rapid review and fast publication of short articles on all aspects of operations research and analytics. Apart from a limitation to eight journal pages, quality, originality, relevance and clarity are the only criteria for selecting the papers to be published. ORL covers the broad field of optimization, stochastic models and game theory. Specific areas of interest include networks, routing, location, queueing, scheduling, inventory, reliability, and financial engineering. We wish to explore interfaces with other fields such as life sciences and health care, artificial intelligence and machine learning, energy distribution, and computational social sciences and humanities. Our traditional strength is in methodology, including theory, modelling, algorithms and computational studies. We also welcome novel applications and concise literature reviews.