Joint pricing strategies of multi-product retailer with reference-price and substitution-price effect

Previous studies on the multi-period pricing problem indicate that in addition to products’ retail prices, the reference price has an important effect on consumers’ demand. We conduct regression analysis on real transaction data of fruit. The empirical results show that R square is 0.777 in the regression results among retail price, reference price and consumers’ demand. Furthermore, we add substitution price as a new variable in the regression...