Based on Dobson and Kalish XXXXXXXXXXChandler Enterprises produces two competing products, A and B. The company wants to sell these products to two groups of customers, group 1 and group 2. The values...

Based on Dobson and Kalish (1988). Chandler Enterprises produces two competing products, A and B. The company wants to sell these products to two groups of customers, group 1 and group 2. The values each customer places on a unit of A and B are shown in the file P04_123.xlsx. Each customer will buy either product A or product B, but not both. A customer is willing to buy product A if she believes that the Premium of product A is greater than or equal to the Premium of product B and Premium of product A is greater than or equal to 0. Here, the “premium” of a product is its value minus its price. Similarly, a customer is willing to buy B if she believes the Premium of product B is greater than or equal to the Premium of product A and the Premium of product B is greater than or equal to 0. Group 1 has 1000 members, and group 2 has 1500 members. Chandler wants to set prices for each product to ensure that group 1 members purchase product A and group 2 members purchase product B. Determine how Chandler can maximize its revenue.