This paper develops a model for capturing continuous heterogeneity in the joint distribution of reservation prices for products and bundles. Our model is derived from utility theory and captures both within-and among-subject variability. Furthermore, it provides dollarmetric reservation prices...

The authors propose two variants of lexicographic preference rules. They obtain the necessary and sufficient conditions under which a linear utility function represents a standard lexicographic rule, and each of the proposed variants, over a set of discrete attributes. They then: (i)...

Consumer reservation price is a key concept in marketing and economics. Theoretically, this concept has been instrumental in studying consumer purchase decisions,competitive pricing strategies,and welfare economics. Managerially,knowledge of consumer reservation prices is critical for...

Quantity discount pricing is a common practice used by business-to-business and business-to-consumer companies. A key characteristic of quantity discount pricing is that the marginal price declines with higher purchase quantities. In this paper, we propose a choice-based conjoint model for...

The authors model product consideration as preceding choice in a segment-level conjoint model. They propose a latent-class tobit model to estimate cardinal, segment-level preference functions based on consumers' preference ratings for product concepts considered worth adding to consumers'...

Quantity discount pricing is a common practice used by business-to-business and business-to-consumer companies. A key characteristic of quantity discount pricing is that the marginal price declines with higher purchase quantities. In this paper, we propose a choice-based conjoint model for...