You are operating a web site to match up sellers and buyers of a product. 35 sellers
Question:
You are operating a web site to match up sellers and buyers of a product. 35 sellers and 35 buyers have input their reservation prices, as listed in the file P08_23.xlsx.
For example, buyer 1 is willing to pay up to $8 for an item, and seller 1 is willing to accept $9 or more for an item. This means that buyer 1 and seller 1 cannot be matched. The goal of http://www.Split-
TheDifference.com (there is such aWeb site run by Yale professor Barry Nalebuff) is to pair buyers with sellers to maximize the sum of buyers’ and sellers’
surplus. For example, if buyer 31 and seller 31 are matched, a deal can be made by splitting the difference with a price of $57. Then buyer 31 earns a surplus of 60 57 $3, and seller 31 earns a surplus of 57 54 $3. What is the maximum sum of buyers’ and sellers’ surplus that can be obtained?
Step by Step Answer:
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright