Price optimization for a TV company
Algorithm generating optimal prices of plans
Our company has carried out a project targeted at shaping optimal prices for plans suggested by a TV company to its clients.
Input information included average profit of a customer, his preferences and schedule of games in a season.
A plan of the TV company is a type of paying for viewing a game. Our developers have created a math model for each plan, taking into consideration that some of the games can be watched for free. The goal of each math model was maximization of company revenue .
Depending on the complexity of a certain price strategy our developers have either used a system of nonlinear equations generated on a base of optimality conditions, or solved a task of revenue maximization. For the second option they had to create a system of additional price limitations and a starting point, to avoid the problem of multiple local maximums.
- Nonlinear optimization,
- Nonlinear equations,
- Mathematical modeling,
- Revenue maximization,
- Financial modeling,
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