Dynamic Pricing and Auction - Department of Industrial Engineering ...
Dynamic Pricing and Auction - Department of Industrial Engineering ...
Dynamic Pricing and Auction - Department of Industrial Engineering ...
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Multiunit auction with indivisible bidsBidder (i) Bid (p max pqxi ,q i )∑i i i1 (20, 30)(30, 30)123 st .∑xiiqxiii≤ Q∈{0,1}∀i3(15, 60)4 (10, 30)5(25, 20) 2Total Quantity to Sell =100Total Quantity Sold =80Total Revenue=30*30+25*20+20*30Wherei The buyer ipiis unit priceqiis the quantityQ is the total dem<strong>and</strong>,x i is the decision variablei• Each bid is represented as a price quantity pair(p i, q i )• A knapsack problem!!• What is the complexity if solved by Branch <strong>and</strong>Bound Algorithm?• A greedy algorithm does exist
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