Mining competitively-priced bundle configurations
Abstract
We examine the bundle configuration problem in the presence of competition. Given a competitor's bundle configuration and pricing, we determine what to bundle together, and at what prices, to maximize the target firm's revenue. We highlight the difficulty in pricing bundles and propose a scalable alternative and an efficient search heuristic to refine the approximate prices. Furthermore, we extend the heuristics proposed by previous work to accommodate the presence of a competitor. We analyze the effectiveness of our proposed models through experimentation on real-life ratings-based preference data.
This paper has been withdrawn.