Question: Let {A, B} be two indivisible single unit products, and u1, U2, U3 three interested buyers. The following table depicts how much each buyer is

 Let {A, B} be two indivisible single unit products, and u1,

Let {A, B} be two indivisible single unit products, and u1, U2, U3 three interested buyers. The following table depicts how much each buyer is willing to pay for every subset of products, and the objective of the problem is to maximise the total payments. A B ui 5 8 {A, B} 12 10 18 U2 9 - U3 - 6 Meaning for example that buyer U, is willing to pay 9 for product A, and 10 for the bundle {A, B}. Notice also that if someone buys A, then the bundle {A, B} cannot be bought by someone else. a) Model the problem as an integer program. b) Find by inspection the optimal solution. c) How do your answers for a) and b) change if buyer uz has a total budget of 15. Let {A, B} be two indivisible single unit products, and u1, U2, U3 three interested buyers. The following table depicts how much each buyer is willing to pay for every subset of products, and the objective of the problem is to maximise the total payments. A B ui 5 8 {A, B} 12 10 18 U2 9 - U3 - 6 Meaning for example that buyer U, is willing to pay 9 for product A, and 10 for the bundle {A, B}. Notice also that if someone buys A, then the bundle {A, B} cannot be bought by someone else. a) Model the problem as an integer program. b) Find by inspection the optimal solution. c) How do your answers for a) and b) change if buyer uz has a total budget of 15

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!