Technical Note: Space Constrained Assortment Optimization under the Paired Combinatorial Logit Model

22 Pages Posted: 5 Aug 2017

See all articles by Jacob Feldman

Jacob Feldman

Washington University in St. Louis - John M. Olin Business School

Date Written: August 3, 2017

Abstract

We study the space constrained assortment optimization problem under the paired combinatorial logit choice model. The goal in this problem is to choose a set of products to make available for purchase with the intention of maximizing the expected revenue from each arriving customer. Each offered product occupies a specific amount of space and there is a limit on the space consumed by all of the offered products. The purchasing decision of each customer is governed by the paired combinatorial logit choice model. We provide the first efficient constant factor approximation for this problem.

Keywords: Paired Combinatorial Logit Model, Assortment Optimization, Approximation Algorithms

Suggested Citation

Feldman, Jacob, Technical Note: Space Constrained Assortment Optimization under the Paired Combinatorial Logit Model (August 3, 2017). Available at SSRN: https://ssrn.com/abstract=3013321 or http://dx.doi.org/10.2139/ssrn.3013321

Jacob Feldman (Contact Author)

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States

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