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Polynomial cases of the tarification problem

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Author Info
Hoesel,Stan,van
Kraaij,Anton F.,van der
Mannino,Carlo
Bouhtou,Mustapha
Oriolo,Gianpaolo (METEOR)
Abstract

We consider the problem of determining a set of optimal tariffs for an agent in a network, who owns a subset of the arcs of the network, and who wishes to maximize his revenues on this subset from a set of clients that make use of the network.The general variant of this problem is NP-hard, already with a single client. This paper introduces several new polynomially solvable special cases. An important case is the following.For multiple clients, if the number of tariff arcs is bounded from above, we can solve the problem by a polynomial number of linear programs (each of which is of polynomial size). Furthermore, we show that the parametric tarification problem and the single arc fixed charge tarification problem can be solved in polynomial time.

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Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 063.

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Date of creation: 2003
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Handle: RePEc:dgr:umamet:2003063

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Keywords: Economics

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  1. Bouhtou,Mustapha & Hoesel,Stan,van & Kraaij,Anton F.,van der & Lutton,Jean-Luc, 2003. "Tariff optimization in Networks," Research Memoranda 041, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
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  1. Grigoriev,Alexander & Hoesel,Stan,van & Kraaij,Anton F.,van der & Marc,Uetz & Mustapha,Bouhtou, 2004. "Pricing Network Edges to Cross a River," Research Memoranda 009, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
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