Optimal Pricing of a Personalized Product

Journal of Systems Science and Systems Engineering, January 2008

6 Pages Posted: 16 Feb 2008 Last revised: 1 May 2014

See all articles by Suresh Sethi

Suresh Sethi

University of Texas at Dallas - Naveen Jindal School of Management

Abstract

This paper deals with optimal pricing of a personalized product such as a personal portrait or photo. A new model of the pricing structure inspired by two real-life cases is introduced to the literature and solved to obtain optimal photo sitting fees and the final product price. A sensitivity analysis with respect to the problem parameters is performed.

Keywords: personalized product, pricing, salvage loss, customized product, sensitivity analysis

JEL Classification: C61, M3

Suggested Citation

Sethi, Suresh, Optimal Pricing of a Personalized Product. Journal of Systems Science and Systems Engineering, January 2008, Available at SSRN: https://ssrn.com/abstract=1094175

Suresh Sethi (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

800 W. Campbell Road, SM30
Richardson, TX 75080-3021
United States

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