Abstract
We consider a vertical product line design problem for a monopolist where products are designed with quality-type attributes and customers exhibit an ordered pattern in attribute part worth. In this paper, we examine the appropriateness of attribute-level ordering approach in designing a vertical product line, and show that the approach, although used widely in practice, is not optimal and can lead to an arbitrarily bad design. Furthermore, we present a sufficient condition when attribute-level-ordering is optimal.
| Original language | English (US) |
|---|---|
| Pages | 1952-1956 |
| Number of pages | 5 |
| State | Published - 2002 |
| Event | Decision Sciences Institute 2002 Proceedings - San Diego, CA, United States Duration: Nov 23 2002 → Nov 26 2002 |
Other
| Other | Decision Sciences Institute 2002 Proceedings |
|---|---|
| Country/Territory | United States |
| City | San Diego, CA |
| Period | 11/23/02 → 11/26/02 |
ASJC Scopus subject areas
- Management Information Systems
- Hardware and Architecture