Complexity of solution structures in nonlinear pricing |
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Authors: | Kimmo Berg |
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Institution: | 1. Systems Analysis Laboratory, Aalto University School of Science, P.O. Box 11100, 00076, Aalto, Finland
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Abstract: | This paper characterizes and enumerates the possible solution structures in nonlinear pricing problem when the number of buyer types is given. It is shown that the single-crossing property, which is a standard assumption in the literature, reduces the complexity of solving the problem dramatically. The number of possible solution structures is important when the pricing problem is solved under limited information. |
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