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This study introduces an optimal mechanism in a dynamic stochastic knapsack environment. The model features a single seller who has a fixed quantity of a perfectly divisible item. Impatient buyers with a piece-wise linear utility function…

Computer Science and Game Theory · Computer Science 2024-02-23 Jihyeok Jung , Chan-Oi Song , Deok-Joo Lee , Kiho Yoon

In this paper, we study the offline sequential feature-based pricing and inventory control problem where the current demand depends on the past demand levels and any demand exceeding the available inventory is lost. Our goal is to leverage…

Machine Learning · Statistics 2026-03-12 Korel Gundem , Zhengling Qi

We study the problem of dynamic assortment personalization with large, heterogeneous populations and wide arrays of products, and demonstrate the importance of structural priors for effective, efficient large-scale personalization.…

Machine Learning · Statistics 2019-05-03 Nathan Kallus , Madeleine Udell

We use a control framework to analyze the digital vendor's profit maximization problem. The vendor captures market share by focusing costly effort on post-launch product maintenance, which influences user perception of the product and…

General Finance · Quantitative Finance 2017-02-28 James Fan , Christopher Griffin

Traditional pricing paradigms, once dominated by static models and rule-based heuristics, are increasingly being replaced by dynamic, data-driven approaches powered by machine learning algorithms. Despite their growing sophistication, most…

Machine Learning · Computer Science 2025-12-01 Marco Mussi , Marcello Restelli

We study consumer demand in large-scale retail settings with many products, multiple categories and repeated purchase behavior. While inertia and brand loyalty are well documented, existing discrete choice models typically focus on single…

Econometrics · Economics 2026-05-25 Daniel Brunner , Florian Heiss , Anna B. Schmidt

Agricultural products are often subject to seasonal fluctuations in production and demand. Predicting and managing inventory levels in response to these variations can be challenging, leading to either excess inventory or stockouts.…

Artificial Intelligence · Computer Science 2025-07-23 Amandeep Kaur , Gyan Prakash

We consider dynamic pricing with covariates under a generalized linear demand model: a seller can dynamically adjust the price of a product over a horizon of $T$ time periods, and at each time period $t$, the demand of the product is…

Machine Learning · Computer Science 2023-11-14 Hanzhao Wang , Kalyan Talluri , Xiaocheng Li

We study a problem of an online retailer who observes the unit sales of a product, and dynamically changes the retail price, in order to maximize the expected revenue. Assuming the demand of the product is price sensitive, we are interested…

Systems and Control · Electrical Eng. & Systems 2021-06-17 Chengcheng Liu , Mátyás A. Sustik

We study a multi-objective model on the allocation of reusable resources under model uncertainty. Heterogeneous customers arrive sequentially according to a latent stochastic process, request for certain amounts of resources, and occupy…

Optimization and Control · Mathematics 2023-08-02 Xilin Zhang , Wang Chi Cheung

We consider a monopolist seller with $n$ heterogeneous items, facing a single buyer. The buyer has a value for each item drawn independently according to (non-identical) distributions, and her value for a set of items is additive. The…

Computer Science and Game Theory · Computer Science 2020-08-03 Moshe Babaioff , Nicole Immorlica , Brendan Lucier , S. Matthew Weinberg

In this study, an optimization problem is proposed in order to obtain the maximum economic benefit from wind farms with variable and intermittent energy generation in the day ahead and balancing electricity markets. This method, which is…

Econometrics · Economics 2018-06-15 Akın Taşcikaraoğlu , Ozan Erdinç

In this paper we study the single-item revenue management problem, with no information given about the demand trajectory over time. When the item is sold through accepting/rejecting different fare classes, Ball and Queyranne (2009) have…

Data Structures and Algorithms · Computer Science 2020-01-20 Will Ma , David Simchi-Levi , Chung-Piaw Teo

We consider assortment and inventory planning problems with dynamic stockout-based substitution effects, and without replenishment, in two different settings: (1) Customers can see all available products when they arrive, a typical scenario…

Optimization and Control · Mathematics 2025-01-09 Shuo Sun , Rajan Udwani , Zuo-Jun Max Shen

Assortment optimization is a critical tool for online retailers aiming to maximize revenue. However, optimizing purely for revenue can lead to unbalanced sales across products, potentially causing a long tail of low-selling products and…

Computer Science and Game Theory · Computer Science 2026-03-16 Omar El Housni , Qing Feng , Huseyin Topaloglu

A novel high-frequency market-making approach in discrete time is proposed that admits closed-form solutions. By taking advantage of demand functions that are linear in the quoted bid and ask spreads with random coefficients, we model the…

Trading and Market Microstructure · Quantitative Finance 2024-05-21 Jonathan Chávez-Casillas , José E. Figueroa-López , Chuyi Yu , Yi Zhang

We consider a two-product inventory system with independent Poisson demands, limited joint storage capacity and partial demand substitution. Replenishment is performed simultaneously for both products and the replenishment time may be fixed…

Optimization and Control · Mathematics 2015-10-20 Apostolos N. Burnetas , Odysseas Kanavetas

Tandem queueing systems are widely-used stochastic models that arise from many real-life service operations systems. Motivated by the desire to understand the trade-off between the performance and complexity of policies for…

Optimization and Control · Mathematics 2018-04-25 Tonghoon Suk , Xinchang Wang

Volatile electrical energy prices are a challenge and an opportunity for small and medium-size companies in energy-intensive industries. By using electrical energy storage and/or an adaptation of production processes, companies can…

Optimization and Control · Mathematics 2023-11-21 Michael Stiglmayr , Svenja Uhlemeyer , Björn Uhlemeyer , Markus Zdrallek

We consider a physical asset consisting of complex systems, where the systems may require upgrades during the lifetime of the asset. In practice, the asset owner and system supplier can make the upgrade decisions together, requiring a…

Optimization and Control · Mathematics 2023-02-08 Fiona Sloothaak , Alp Akçay , Matthieu van der Heijden , Geert-Jan van Houtum