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Ancillaries have become a major source of revenue and profitability in the travel industry. Yet, conventional pricing strategies are based on business rules that are poorly optimized and do not respond to changing market conditions. This…

Machine Learning · Statistics 2019-02-07 Naman Shukla , Arinbjörn Kolbeinsson , Ken Otwell , Lavanya Marla , Kartik Yellepeddi

The AI4GCC competition presents a bold step forward in the direction of integrating machine learning with traditional economic policy analysis. Below, we highlight two potential areas for improvement that could enhance the competition's…

Artificial Intelligence · Computer Science 2023-08-11 Marco Jiralerspong , Gauthier Gidel

We present our approach to the problem of how an agent, within an economic Multi-Agent System, can determine when it should behave strategically (i.e. learn and use models of other agents), and when it should act as a simple price-taker. We…

Multiagent Systems · Computer Science 2007-05-23 Jose M. Vidal , Edmund H. Durfee

This paper introduces a new Negotiating Agent for automated negotiation on continuous domains and without considering a specified deadline. The agent bidding strategy relies on Monte Carlo Tree Search, which is a trendy method since it has…

Artificial Intelligence · Computer Science 2019-04-01 Cédric Buron , Zahia Guessoum , Sylvain Ductor

We undertake a formal study of the value of targeting data to an advertiser. As expected, this value is increasing in the utility difference between realizations of the targeting data and the accuracy of the data, and depends on the…

Computer Science and Game Theory · Computer Science 2014-07-15 Kshipra Bhawalkar , Patrick Hummel , Sergei Vassilvitskii

We examine two types of binary betting markets, whose primary goal is for profit (such as sports gambling) or to gain information (such as prediction markets). We articulate the interplay between belief and price-setting to analyse both…

Computer Science and Game Theory · Computer Science 2024-06-07 Haiqing Zhu , Alexander Soen , Yun Kuen Cheung , Lexing Xie

Second-price auctions with reserve play a critical role for modern search engine and popular online sites since the revenue of these companies often directly de- pends on the outcome of such auctions. The choice of the reserve price is the…

Machine Learning · Computer Science 2014-12-03 Mehryar Mohri , Andres Muñoz Medina

Firms engaged in electronic commerce increasingly rely on predictive analytics via machine-learning algorithms to drive a wide array of managerial decisions. The tuning of many standard machine learning algorithms can be understood as…

Computer Science and Game Theory · Computer Science 2022-02-25 Yiding Feng , Ronen Gradwohl , Jason Hartline , Aleck Johnsen , Denis Nekipelov

Real-time bidding, as one of the most popular mechanisms for selling online ad slots, facilitates advertisers to reach their potential customers. The goal of bidding optimization is to maximize the advertisers' return on investment (ROI)…

Computer Science and Game Theory · Computer Science 2019-03-01 Manxing Du , Alexander I. Cowen-Rivers , Ying Wen , Phu Sakulwongtana , Jun Wang , Mats Brorsson , Radu State

We present a simple dynamical model for describing trading interactions between agents in a social network by considering only two dynamical variables, namely money and goods or services, that are assumed conserved over the whole time span…

Physics and Society · Physics 2017-02-01 Rafael A. Barrio , Tzipe Govezensky , Élfego Ruiz-Gutiérrez , Kimmo K. Kaski

In online advertising, a set of potential advertisements can be ranked by a certain auction system where usually the top-1 advertisement would be selected and displayed at an advertising space. In this paper, we show a selection bias issue…

Information Retrieval · Computer Science 2022-06-09 Shinya Suzumura , Hitoshi Abe

Algorithmic decision-support systems, i.e., recommender systems, are popular digital tools that help tourists decide which places and attractions to explore. However, algorithms often unintentionally direct tourist streams in a way that…

Information Retrieval · Computer Science 2025-08-29 Peter Muellner , Anna Schreuer , Simone Kopeinik , Bernhard Wieser , Dominik Kowald

The game of bridge consists of two stages: bidding and playing. While playing is proved to be relatively easy for computer programs, bidding is very challenging. During the bidding stage, each player knowing only his/her own cards needs to…

Artificial Intelligence · Computer Science 2019-03-06 Jiang Rong , Tao Qin , Bo An

Using a model in which agents compete to develop a potentially dangerous new technology (AI), we study how changes in the pricing of factors of production (computational resources) affect agents' strategies, particularly their spending on…

General Economics · Economics 2023-02-23 Mckay Jensen , Nicholas Emery-Xu , Robert Trager

In the past several decades, the world's economy has become increasingly globalized. On the other hand, there are also ideas advocating the practice of ``buy local'', by which people buy locally produced goods and services rather than those…

Theoretical Economics · Economics 2023-05-10 Huan Cai , Catherine Xu , Weiyu Xu

Team competition in multi-agent Markov games is an increasingly important setting for multi-agent reinforcement learning, due to its general applicability in modeling many real-life situations. Multi-agent actor-critic methods are the most…

Multiagent Systems · Computer Science 2023-01-18 Paramita Koley , Aurghya Maiti , Niloy Ganguly , Sourangshu Bhattacharya

Pricing decisions are increasingly made by AI. Thanks to their ability to train with live market data while making decisions on the fly, deep reinforcement learning algorithms are especially effective in taking such pricing decisions. In…

Artificial Intelligence · Computer Science 2021-07-06 Michael Schlechtinger , Damaris Kosack , Heiko Paulheim , Thomas Fetzer

In economics, there are many ways to describe the interaction between a "seller" and a "buyer". The most common one, with which we interact almost every day, is selling for a fixed price. This option is perfect for selling a mass product,…

General Finance · Quantitative Finance 2024-07-10 O. A. Malafeyev , I. E. Khomenko

Most modern ticketing systems rely on a first-come-first-serve or randomized allocation system to determine the allocation of tickets. Such systems has received considerable backlash in recent years due to its inequitable allotment and…

General Economics · Economics 2023-09-21 Boxiang Fu

The aim of this article is to propose a core game theory model of transaction costs wherein it is indicated how direct costs determine the probability of loss and subsequent transaction costs. The existence of optimum is proven, and the way…

Theoretical Economics · Economics 2020-08-25 László Kállay , Tibor Takács , László Trautmann