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A fundamental economic question is that of designing revenue-maximizing mechanisms in dynamic environments. This paper considers a simple yet compelling market model to tackle this question, where forward-looking buyers arrive at the market…

Theoretical Economics · Economics 2024-10-16 Jose Correa , Andres Cristi , Laura Vargas Koch

We consider an agent who needs to buy (or sell) a relatively small amount of asset over some fixed short time interval. We work at the highest frequency meaning that we wish to find the optimal tactic to execute our quantity using limit…

Trading and Market Microstructure · Quantitative Finance 2018-03-16 Charles-Albert Lehalle , Othmane Mounjid , Mathieu Rosenbaum

In a multiobjective optimization problem a solution is called Pareto-optimal if no criterion can be improved without deteriorating at least one of the other criteria. Computing the set of all Pareto-optimal solutions is a common task in…

Data Structures and Algorithms · Computer Science 2020-10-22 Heiko Röglin

We study the on-line minimum weighted bipartite matching problem in arbitrary metric spaces. Here, $n$ not necessary disjoint points of a metric space $M$ are given, and are to be matched on-line with $n$ points of $M$ revealed one by one.…

Data Structures and Algorithms · Computer Science 2007-06-06 Béla Csaba , András S. Pluhár

We consider the communication complexity of a number of distributed optimization problems. We start with the problem of solving a linear system. Suppose there is a coordinator together with $s$ servers $P_1, \ldots, P_s$, the $i$-th of…

Data Structures and Algorithms · Computer Science 2019-11-01 Santosh S. Vempala , Ruosong Wang , David P. Woodruff

The online knapsack problem is a classic problem in the field of online algorithms. Its canonical version asks how to pack items of different values and weights arriving online into a capacity-limited knapsack so as to maximize the total…

Machine Learning · Computer Science 2024-04-18 Adam Lechowicz , Rik Sengupta , Bo Sun , Shahin Kamali , Mohammad Hajiesmaili

In the multi-unit pricing problem, multiple units of a single item are for sale. A buyer's valuation for $n$ units of the item is $v \min \{ n, d\} $, where the per unit valuation $v$ and the capacity $d$ are private information of the…

Computer Science and Game Theory · Computer Science 2017-04-18 Nikhil R. Devanur , Nima Haghpanah , Christos-Alexandros Psomas

We propose a new efficient online algorithm to learn the parameters governing the purchasing behavior of a utility maximizing buyer, who responds to prices, in a repeated interaction setting. The key feature of our algorithm is that it can…

Machine Learning · Statistics 2018-03-07 Debjyoti Saharoy , Theja Tulabandhula

We provide a characterization of revenue-optimal dynamic mechanisms in settings where a monopolist sells k items over k periods to a buyer who realizes his value for item i in the beginning of period i. We require that the mechanism…

Computer Science and Game Theory · Computer Science 2016-07-06 Itai Ashlagi , Constantinos Daskalakis , Nima Haghpanah

Internet search companies sell advertisement slots based on users' search queries via an auction. While there has been a lot of attention on the auction process and its game-theoretic aspects, our focus is on the advertisers. In particular,…

Data Structures and Algorithms · Computer Science 2007-05-23 Jon Feldman , S. Muthukrishnan , Martin Pal , Cliff Stein

We study the problem of computing optimal prices for a version of the Product-Mix auction with budget constraints. In contrast to the ``standard'' Product-Mix auction, the objective is to maximize revenue instead of social welfare. We prove…

Computer Science and Game Theory · Computer Science 2022-08-05 Maximilian Fichtl

We study a dynamic market setting where an intermediary interacts with an unknown large sequence of agents that can be either sellers or buyers: their identities, as well as the sequence length $n$, are decided in an adversarial, online…

Computer Science and Game Theory · Computer Science 2017-03-29 Yiannis Giannakopoulos , Elias Koutsoupias , Philip Lazos

We consider {\em profit-maximization} problems for {\em combinatorial auctions} with {\em non-single minded valuation functions} and {\em limited supply}. We obtain fairly general results that relate the approximability of the…

Computer Science and Game Theory · Computer Science 2013-12-03 Khaled Elbassioni , Mahmoud Fouz , Chaitanya Swamy

Consider a network design application where we wish to lay down a minimum-cost spanning tree in a given graph; however, we only have stochastic information about the edge costs. To learn the precise cost of any edge, we have to conduct a…

Data Structures and Algorithms · Computer Science 2017-11-02 Sahil Singla

Employing probabilistic techniques we compute best possible upper and lower bounds on the price of an option on one or two assets with continuous piecewise linear payoff function based on prices of simple call options of possibly distinct…

Probability · Mathematics 2008-12-02 Dimitris Bertsimas , Natasha Bushueva

Optimization plays a costly and crucial role in developing machine learning systems. In learned optimizers, the few hyperparameters of commonly used hand-designed optimizers, e.g. Adam or SGD, are replaced with flexible parametric…

Machine Learning · Computer Science 2022-07-19 Luke Metz , C. Daniel Freeman , James Harrison , Niru Maheswaranathan , Jascha Sohl-Dickstein

In this work we study the optimal execution problem with multiplicative price impact in algorithm trading, when an agent holds an initial position of shares of a financial asset. The inter-selling-decision times are modelled by the arrival…

Mathematical Finance · Quantitative Finance 2018-05-04 Daniel Hernández-Hernández , Harold A. Moreno-Franco , José Luis Pérez

We study the problem of multi-dimensional revenue maximization when selling $m$ items to a buyer that has additive valuations for them, drawn from a (possibly correlated) prior distribution. Unlike traditional Bayesian auction design, we…

Computer Science and Game Theory · Computer Science 2022-04-29 Yiannis Giannakopoulos , Diogo Poças , Alexandros Tsigonias-Dimitriadis

In this paper we introduce a completely continuous and time-variate model of the evolution of market limit orders based on the existence, uniqueness, and regularity of the solutions to a type of stochastic partial differential equations…

Trading and Market Microstructure · Quantitative Finance 2012-10-29 Zhi Zheng , Richard B. Sowers

In the matroid buyback problem, an algorithm observes a sequence of bids and must decide whether to accept each bid at the moment it arrives, subject to a matroid constraint on the set of accepted bids. Decisions to reject bids are…

Computer Science and Game Theory · Computer Science 2009-11-30 Ashwinkumar B. V. , Robert Kleinberg
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