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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Acknowledgments
We thank two anonymous referees for their very useful suggestions. Joyce van Loon acknowledges support by METEOR, the Maastricht Research School of Economics of Technology and Organizations. A preliminary version with parts of this work appeared in the conference proceedings Grigoriev et al. (2010).
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Open Access This is an open access article distributed under the terms of the Creative Commons Attribution Noncommercial License (https://creativecommons.org/licenses/by-nc/2.0), which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.
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Grigoriev, A., van Loon, J. & Uetz, M. On the complexity of a bundle pricing problem. 4OR-Q J Oper Res 9, 255–260 (2011). https://doi.org/10.1007/s10288-011-0154-z
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DOI: https://doi.org/10.1007/s10288-011-0154-z