New product introduction against a predator: A bilevel mixed-integer programming approach Export

@article{citeulike:6074576, abstract = {We consider a scenario with two firms determining which products to develop and introduce to the market. In this problem, there exists a finite set of potential products and market segments. Each market segment has a preference list of products and will buy its most preferred product among those available. The firms play a Stackelberg game in which the leader firm first introduces a set of products, and the follower responds with its own set of products. The leader's goal is to maximize its profit subject to a product introduction budget, assuming that the follower will attempt to minimize the leader's profit using a budget of its own. We formulate this problem as a multistage integer program amenable to decomposition techniques. Using this formulation, we develop three variations of an exact mathematical programming method for solving the multistage problem, along with a family of heuristic procedures for estimating the follower solution. The efficacy of our approaches is demonstrated on randomly generated test instances. This article contributes to the operations research literature a multistage algorithm that directly addresses difficulties posed by degeneracy, and contributes to the product variety literature an exact optimization algorithm for a novel competitive product introduction problem. {\copyright} 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2009}, address = {Department of Industrial and Systems Engineering, University of Florida, Gainesville, Florida 32611-9565; Systems Engineering and Engineering Management Program, University of North Carolina at Charlotte, Charlotte, North Carolina 28223; Edwin L. Cox School of Business, Southern Methodist University, Dallas, Texas 75275}, author = {Smith, J. Cole and Lim, Churlzu and Alptekino\ğlu, Ayd\ın}, citeulike-article-id = {6074576}, citeulike-linkout-0 = {http://dx.doi.org/10.1002/nav.20375}, citeulike-linkout-1 = {http://www3.interscience.wiley.com/cgi-bin/abstract/122573525/ABSTRACT}, doi = {10.1002/nav.20375}, issn = {1520-6750}, journal = {Naval Research Logistics}, keywords = {innovation}, number = {8}, pages = {714--729}, posted-at = {2009-11-05 14:20:16}, priority = {2}, title = {New product introduction against a predator: A bilevel mixed-integer programming approach}, url = {http://dx.doi.org/10.1002/nav.20375}, volume = {56}, year = {2009} }

TY - JOUR ID - citeulike:6074576 L3 - citeulike-article-id:6074576 N2 - We consider a scenario with two firms determining which products to develop and introduce to the market. In this problem, there exists a finite set of potential products and market segments. Each market segment has a preference list of products and will buy its most preferred product among those available. The firms play a Stackelberg game in which the leader firm first introduces a set of products, and the follower responds with its own set of products. The leader's goal is to maximize its profit subject to a product introduction budget, assuming that the follower will attempt to minimize the leader's profit using a budget of its own. We formulate this problem as a multistage integer program amenable to decomposition techniques. Using this formulation, we develop three variations of an exact mathematical programming method for solving the multistage problem, along with a family of heuristic procedures for estimating the follower solution. The efficacy of our approaches is demonstrated on randomly generated test instances. This article contributes to the operations research literature a multistage algorithm that directly addresses difficulties posed by degeneracy, and contributes to the product variety literature an exact optimization algorithm for a novel competitive product introduction problem. © 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2009 IS - 8 JF - Naval Research Logistics SN - 1520-6750 AD - Department of Industrial and Systems Engineering, University of Florida, Gainesville, Florida 32611-9565; Systems Engineering and Engineering Management Program, University of North Carolina at Charlotte, Charlotte, North Carolina 28223; Edwin L. Cox School of Business, Southern Methodist University, Dallas, Texas 75275 EP - 729 TI - New product introduction against a predator: A bilevel mixed-integer programming approach VL - 56 SP - 714 KW - innovation AU - Smith, Cole AU - Lim, Churlzu AU - Alptekinoğlu, Aydın PY - 2009/// UR - http://dx.doi.org/10.1002/nav.20375 ER -