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|Title:||The envy-free pricing problem, unit-demand markets andconnections with the network pricing problem|
|Author:||Fernandes, Cristina G.|
Ferreira, Carlos E.
Franco, Alvaro J. P.
Schouery, Rafael C. S.
|Abstract:||A common problem faced in economics is to decide the pricing of products of a company, since poorly chosen prices might lead to low profit. One important model for this is the unit-demand envy-free pricing problem, in which one considers that every consumer buys an item that maximizes his own profit, and the goal is to find a pricing of the items that maximizes the expected profit of the seller. This is a practical and interesting problem which is, unfortunately, not in APX unless P=NP. We present two new MIP formulations for this problem and experimentally compare them to previous ones from the literature. We describe three models to generate different random instances for general unit-demand auctions, that we designed for the computational experiments. Each model has a nice economic interpretation. Our results show that one of our MIP formulations can sometimes lead to better results than the previous ones from the literature. We also consider a variant of the network pricing problem in which one has to price toll arcs in a highway, and prove that it is as hard to approximate as the envy-free pricing problem. © 2015 Elsevier B.V.|
A common problem faced in economics is to decide the pricing of products of a company, since poorly chosen prices might lead to low profit. One important model for this is the unit-demand envy-free pricing problem, in which one considers that every consum
Teoria dos jogos
|Citation:||Discrete Optimization. Elsevier, p. , 2015.|
|Appears in Collections:||IC - Artigos e Outros Documentos|
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