Article ID: | iaor20102891 |
Volume: | 36 |
Issue: | 5 |
Start Page Number: | 609 |
End Page Number: | 614 |
Publication Date: | Sep 2008 |
Journal: | Operations Research Letters |
Authors: | Grigoriev A, van Loon J, Sviridenko M, Uetz M, Vredeveld T |
Keywords: | financial |
We consider the problem of pricing (digital) items in order to maximize the revenue obtainable from a set of bidders. We suggest a natural monotonicity constraint on bundle prices, show that the problem remains NP-hard, and we derive a polynomial time approximation scheme. We also briefly discuss the highway pricing problem.