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Although businesses often rely on heuristic \u201csegment-then-price\u201d methods, in their article the authors show that under realistic statistical assumptions, the jointly optimal segmentation and pricing policy can be computed efficiently. Further, using structural results about the optimal FBMSP, the authors prove that semipersonalized pricing quickly converges to the performance of fully personalized pricing, motivating its use in practice. Finally, in a case study on U.S. home mortgage data, they apply their method and show it significantly outperforms traditional heuristics, achieving near-maximal revenue with only a few segments. This research offers both practical tools and theoretical insights for firms navigating the balance between personalization and implementability in pricing.<\/jats:p>","DOI":"10.1287\/opre.2022.0490","type":"journal-article","created":{"date-parts":[[2026,2,10]],"date-time":"2026-02-10T15:54:02Z","timestamp":1770738842000},"page":"1354-1370","source":"Crossref","is-referenced-by-count":0,"title":["Optimal Feature-Based Market Segmentation and Pricing"],"prefix":"10.1287","volume":"74","author":[{"ORCID":"https:\/\/orcid.org\/0000-0003-3040-2302","authenticated-orcid":false,"given":"Titing","family":"Cui","sequence":"first","affiliation":[{"name":"Collins College of Business, University of Tulsa, Tulsa, Oklahoma 74104"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-4671-395X","authenticated-orcid":false,"given":"Michael L.","family":"Hamilton","sequence":"additional","affiliation":[{"name":"School of Business, University of Pittsburgh, Pittsburgh, Pennsylvania 15213"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2023.1195"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1177\/002224297604000408"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1073\/pnas.1510489113"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2020.3680"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1257\/aer.20130848"},{"key":"B6","doi-asserted-by":"publisher","DOI":"10.1016\/j.geb.2021.11.008"},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1287\/ijoo.2018.0005"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2014.2049"},{"issue":"9","key":"B9","first-page":"17","volume":"105","author":"Bholowalia P","year":"2014","journal-title":"Internat. 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