The problem of maximizing the share of a new product introduced in a competitive market is shown to be NP-hard. A directed graph representation of the problem is used to construct shortest-path and dynamic-programming heuristics. Both heuristics are shown to have arbitrarily-bad worst-case bounds. Computational experience with real-sized problems is reported. Both heuristics identify near-optimal solutions for the simulated problems, the dynamic-programming heuristic performing better than the shortest-path heuristic.
Kohli, Rajeev, and Ramesh Krishnamurti. "Optimal Product Design Using Conjoint Analysis: Computational Complexity and Algorithms." European Journal of Operational Research 40 (May 1989): 186-95.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.