Notations
| Meanings | |
|---|---|
| Symbols | |
| v | Customer valuation on products, v ∼ U[0, 1] |
| c | Unit production cost |
| β | The efficiency of developing CPA |
| Δ0 | Initial customer profile error |
| U | Customer utility |
| P(v) | Personalized prices for different customers, P(v) = v − Δ |
| ΠM | Profit of the manufacturer |
| ΠP | Profit of the platform |
| D | Demand |
| Decision variables | |
| Δ | Customer profile error set by the platform |
| Ω | Wholesale price set by the manufacturer |
| P | Retail prices of the platform for customers in uniform pricing |
| Subscript | |
| U | Uniform pricing |
| P | Personalized pricing |
| Meanings | |
|---|---|
| Customer valuation on products, | |
| Unit production cost | |
| The efficiency of developing CPA | |
| Δ0 | Initial customer profile error |
| Customer utility | |
| Personalized prices for different customers, | |
| Π | Profit of the manufacturer |
| Π | Profit of the platform |
| Demand | |
| Δ | Customer profile error set by the platform |
| Wholesale price set by the manufacturer | |
| Retail prices of the platform for customers in uniform pricing | |
| Uniform pricing | |
| Personalized pricing | |
Source(s): Table created by authors
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