On the envy-free pricing problem in the sports entertainment industry

• Marcos Salvatierra UFAM
• Rosiane de Freitas UFAM

DOI: https://doi.org/10.5753/etc.2018.3168

Abstract

In this paper, we discuss the feasibility of applying the envy-free pricing problem as strategy in modeling the sale of tickets for sporting events. A mathematical formulation in integer nonlinear programming of the problem is proposed, where assumes that the products have different price ranges, that the customers’ valuations of the products are given by reservation prices, that consumers are grouped into segments, that the supply of each product is limited, that consumers can claim several units of the same product and also that there is no price difference for the same product. The goal is to maximize the seller’s revenue, but in a way that there is buyers’ satisfaction. Preliminary computational experiments demonstrate the viability of the proposed formulation.

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