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Clusterwise Pricing in Stores of a Retail Chain

Hruschka, Harald



Abstract

Clusterwise pricing is characterized by prices of each brand of a category being equal in stores belonging to the same cluster. Expected sales necessary to compute profits are estimated using coefficients of a multilayer perceptron which performs better than several parametric models. Store-specific coefficients of sales response models are estimated by a MCMC method. Both assignment of stores to ...

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