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. The values each customer places...

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. 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.