DocumentCode
2432690
Title
Envy free chain store pricing
Author
Fazli, MohammadAmin ; Nikparto, Nastaran ; Saghafian, Morteza
Author_Institution
Dept. of Comput. Eng., Sharif Univ. of Technol., Tehran, Iran
fYear
2011
fDate
15-16 June 2011
Firstpage
44
Lastpage
47
Abstract
In this paper we study envy free pricing problem in general graphs where there is not a seller in every graph´s nodes. We assume unique establishment cost for initiating a store in each node and we wish to find an optimal set of nodes in which we would make the maximum profit by initiating stores in them. Our model is motivated from the observation that a same product has different prices in different locations and there is also an establishing cost for initiating any store. We consider both of these issues in our model: first where should we establish the stores, and second at what price should we sell our items in them to gain maximum possible profit. We prove that in a case of constant price our problem is NP-Hard and we present a (1 - 1/e)-approximation algorithm for solving “Equal prices-Equal costs” and “Equal prices-Difference costs” versions of this problem.
Keywords
graph theory; optimisation; pricing; profitability; NP-hard; approximation algorithm; constant price; envy free chain store pricing; envy free pricing problem; equal prices-difference costs; equal prices-equal costs; establishment cost; general graphs; graph nodes; maximum possible profit; maximum profit; optimal set; Approximation algorithms; Approximation methods; Cities and towns; Complexity theory; Computers; Cost accounting; Pricing;
fLanguage
English
Publisher
ieee
Conference_Titel
Computer Science and Software Engineering (CSSE), 2011 CSI International Symposium on
Conference_Location
Tehran
Print_ISBN
978-1-61284-206-6
Type
conf
DOI
10.1109/CSICSSE.2011.5963991
Filename
5963991
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