Título:
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Price and Profit Optimization for Financial Services
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Autor/a:
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Bolancé Losilla, Catalina; Guillén, Montserrat; Nielsen, Jens Perch; Thuring, Fredrik
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Otros autores:
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Universitat de Barcelona |
Abstract:
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Prospective customers of financial and insurance products can be targeted based on the profit the provider expects to earn from them. We present a model for individual expected profit and two alternatives for calculating optimal personalized prices that maximize the expected profit. For one of these alternatives, we obtain a closed-form expression for the price offered to each prospective customer; for the other, we need to use a numerical approximation. In both approaches, the profits generated by prospective customers are not immediately observed, given that the products sold by these companies have a risk component. We assume that willingness to pay is heterogeneous and apply our methodology using real data from a European insurance company. Our study indicates that a substantial boost in profits can be expected when applying the simplest optimal pricing method proposed. |
Materia(s):
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-Optimització matemàtica -Política de preus -Mercat financer -Risc (Assegurances) -Mathematical optimization -Prices policy -Financial market -Risk (Insurance) |
Derechos:
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cc-by (c) Bolancé Losilla, Catalina et al., 2018
http://creativecommons.org/licenses/by/3.0/es |
Tipo de documento:
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Artículo Artículo - Versión publicada |
Editor:
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MDPI
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