On the complexity of a bundle pricing problem

On the complexity of a bundle pricing problem

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Article ID: iaor20118585
Volume: 9
Issue: 3
Start Page Number: 255
End Page Number: 260
Publication Date: Sep 2011
Journal: 4OR
Authors: , ,
Keywords: pricing
Abstract:

We consider the problem of pricing items in order to maximize the revenue obtainable from a set of single minded customers. We relate the tractability of the problem to structural properties of customers’ valuations: the problem admits an efficient approximation algorithm, parameterized along the inhomogeneity of the valuations.

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