CSpace  > 应用数学研究所
Approximation algorithms for pricing with negative network externalities
Cao, Zhigang1; Chen, Xujin1; Hu, Xiaodong1; Wang, Changjun2
AbstractWe study the problems of pricing an indivisible product to consumers who are embedded in a given social network. The goal is to maximize the revenue of the seller by the so-called iterative pricing that offers consumers a sequence of prices over time. The consumers are assumed to be impatient in that they buy the product as soon as the seller posts a price not greater than their valuations of the product. The product's value for a consumer is determined by two factors: a fixed consumer-specified intrinsic value and a variable externality that is exerted from the consumer's neighbors in a linear way. We focus on the scenario of negative externalities, which captures many interesting situations, but is much less understood in comparison with its positive externality counterpart. Assuming complete information about the network, consumers' intrinsic values, and the negative externalities, we prove that it is NP-hard to find an optimal iterative pricing, even for unweighted tree networks with uniform intrinsic values. Complementary to the hardness result, we design a 2-approximation algorithm for general weighted networks with (possibly) nonuniform intrinsic values. We show that, as an approximation to optimal iterative pricing, single pricing works fairly well for many interesting cases, such as forests, ErdAs-R,nyi networks and Barabasi-Albert networks, although its worst-case performance can be arbitrarily bad in general networks.
KeywordPricing Approximation algorithms NP-hardness Social networks Random networks Negative externalities
Funding ProjectNNSF of China[11531014] ; NNSF of China[11222109] ; NNSF of China[11471326] ; CAS Program for Cross & Cooperative Team of Science & Technology Innovation
WOS Research AreaComputer Science ; Mathematics
WOS SubjectComputer Science, Interdisciplinary Applications ; Mathematics, Applied
WOS IDWOS:000394241000019
Citation statistics
Document Type期刊论文
Corresponding AuthorWang, Changjun
Affiliation1.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China
2.Beijing Univ Technol, Beijing Inst Sci & Engn Comp, Beijing 100124, Peoples R China
Recommended Citation
GB/T 7714
Cao, Zhigang,Chen, Xujin,Hu, Xiaodong,et al. Approximation algorithms for pricing with negative network externalities[J]. JOURNAL OF COMBINATORIAL OPTIMIZATION,2017,33(2):681-712.
APA Cao, Zhigang,Chen, Xujin,Hu, Xiaodong,&Wang, Changjun.(2017).Approximation algorithms for pricing with negative network externalities.JOURNAL OF COMBINATORIAL OPTIMIZATION,33(2),681-712.
MLA Cao, Zhigang,et al."Approximation algorithms for pricing with negative network externalities".JOURNAL OF COMBINATORIAL OPTIMIZATION 33.2(2017):681-712.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Cao, Zhigang]'s Articles
[Chen, Xujin]'s Articles
[Hu, Xiaodong]'s Articles
Baidu academic
Similar articles in Baidu academic
[Cao, Zhigang]'s Articles
[Chen, Xujin]'s Articles
[Hu, Xiaodong]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Cao, Zhigang]'s Articles
[Chen, Xujin]'s Articles
[Hu, Xiaodong]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.