The Complexity of Shelflisting

Abstract

Optimal shelflisting invites profit maximization to become sensitive to the ways in which purchasing decisions are order-dependent. We study the computational complexity of the corresponding product arrangement problem when consumers are either rational maximizers, use a satisficing procedure, or apply successive choice. The complexity results we report are shown to crucially depend on the size of the top cycle in consumers' preferences over products and on the direction in which alternatives on the shelf are encountered.