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A parallel between two classes of pricing problems in transportation and economics

Géraldine Heilporn (Geraldine.Heilporn***at***hec.ca)
Martine Labbé (mlabbe***at***ulb.ac.be)
Patrice Marcotte (marcotte***at***iro.umontreal.ca)
Gilles Savard (gilles.savard***at***polymtl.ca)

Abstract: In this work, we establish a parallel between two classes of pricing problems that have attracted the attention of researchers in economics, theoretical computer science and operations research, each community addressing issues from its own vantage point. More precisely, we contrast the problems of pricing a network or a product line, in order to achieve maximum revenue, given that customers maximize their individual utility. Throughout the paper, we focus on problems that can be formulated as mixed integer programs.

Keywords: Pricing, Networks, Mixed Integer Programming

Category 1: Applications -- OR and Management Sciences

Category 2: Integer Programming ((Mixed) Integer Linear Programming )

Citation: To appear in Journal of Revenue and Pricing Management.

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Entry Submitted: 01/05/2009
Entry Accepted: 01/06/2009
Entry Last Modified: 10/01/2009

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