An analytical solution to the hotel pricing model for the equilibrium choice-based conjoint analysis approach

This paper develops a computationally efficient approach to solve the game-theoretic hotel pricing model using an equilibrium choice-based conjoint analysis proposed by Arenoe et al. (2015). The authors of that study suggested a modified Newton–Raphson procedure to find the equilibrium prices. This study demonstrates an analytical method rather than a linearization estimate of the derivative to effectively solve the system of equilibrium conditions. The approach is illustrated by an example.