• 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