Pricing Options for Multiple Quality Types of Products

doi:10.1007/s40305-024-00558-9

Journal of the Operations Research Society of China ›› 2026, Vol. 14 ›› Issue (1): 104-128.doi: 10.1007/s40305-024-00558-9

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Pricing Options for Multiple Quality Types of Products

Xiao-Ya Xu¹, Nan Zhao², Jin-Shan Zhang², Jian-Wei Yin²

1 Guangdong University of Finance and Economics, Guangzhou 510320, Guangdong, China;
2 Management Center of School of Software (Ningbo) of Zhejiang University, Zhejiang University, Hangzhou 310058, Zhejiang, China

Received:2023-11-28 Revised:2024-08-26 Online:2026-03-30 Published:2026-03-16
Contact: Jin-Shan Zhang E-mail:zhangjinshan@zju.edu.cn
Supported by:
This work was supported by the National Key Research and Development Program of China (No.2022YFF0902005).Xiao-Ya Xu was supported by the National Natural Science Foundation of China (No.72101059) and Innovative Team Project of Guangdong Universities (No.2019WCXTD008).Jin-Shan Zhang was supported by the Key Research and Development Jianbing Program of Zhejiang Province (No.2023C01002),Hangzhou Major Project and Development Program (No.2022AIZD0140) and Yongjiang Talent Introduction Programme (No.2022A-236-G).

Abstract

Abstract: Companies use different existing products or services to create probabilistic goods. When consumers purchase goods, they calculate their net utility based on the price of the product and thus determine their purchase behaviour. We propose a model related to opaque sales, through which we can determine the optimal price of multiple products and calculate the average profit of the firm and the average net utility of the consumer. Based on the above model, we also present a condition that allows the company to profit from all products when the consumer evaluation presents a particular distribution. This model can be used to help enterprises develop the optimal pricing strategy of products to achieve the desired profit.

Key words: Probabilistic products, Opaque sales, Pricing strategies

CLC Number:

Xiao-Ya Xu, Nan Zhao, Jin-Shan Zhang, Jian-Wei Yin. Pricing Options for Multiple Quality Types of Products[J]. Journal of the Operations Research Society of China, 2026, 14(1): 104-128.

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References

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Pricing Options for Multiple Quality Types of Products

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