Used car salesman problem: A differential auction--barter market

  • Authors:
  • Can Özturan

  • Affiliations:
  • Department of Computer Engineering, Bogazici University, Istanbul, Turkey

  • Venue:
  • Annals of Mathematics and Artificial Intelligence
  • Year:
  • 2005

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Abstract

We define a problem called "used car salesman problem" in which sale, purchase and barter bids can be simultaneously put forward for trading cars. A sale or a purchase bid is expressed in terms of a single car and a sale or purchase price that is required for the car. A barter bid, on the other hand, can be augmented by a differential money amount that is offered or required in addition to the cars that are to be traded. Restrictions are also allowed to be placed on sale and purchase bids. A minimum cost circulation network flow algorithm is presented which produces a solution that maximizes the profit made by the used car salesman.