Dynamic Pricing and Auction - Department of Industrial Engineering ...

Multiunit auction with divisible bidsBidder (i) Bid (p i , q i ) max ∑ px i i1(20, 30) 3 Total quantity soldist .∑ xi≤ Q2i(30, 30) 1 Total quantity soldxi≤qix ≥ 0∀i34 (10, 30)5(25, 20) 2Total Quantity to Sell =100Total Quantity Sold =100(15, 60) 4 (Only 20 units are sold)Total Revenue=30*30+25*20+20*30+15*20Total quantity soldiWhereiThe buyer ipiis unit priceqiis the quantityQ is the total demand,x i is the decision variable• Each bid is represented as a pricequantity ty pair (p i, q i )• Again a simple sorting problem• Last chosen bid gets partial allocation!!