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This paper explores the application of a reinforcement learning (RL) framework using the Q-Learning algorithm to enhance dynamic pricing strategies in the retail sector. Unlike traditional pricing methods, which often rely on static demand…

Machine Learning · Computer Science 2024-11-28 Mohit Apte , Ketan Kale , Pranav Datar , Pratiksha Deshmukh

In this paper, online convex optimization is applied to the problem of controlling linear dynamical systems. An algorithm similar to online gradient descent, which can handle time-varying and unknown cost functions, is proposed. Then,…

Optimization and Control · Mathematics 2021-11-03 Marko Nonhoff , Matthias A. Müller

Convexity, though extremely important in mathematical programming, has not drawn enough attention in the field of dynamic programming. This paper gives conditions for verifying convexity of the cost-to-go functions, and introduces an…

Optimization and Control · Mathematics 2011-11-14 Sheng Yu , Enrique Campos-Nanez

With the increasing number of fast-electric vehicle charging stations (fast-EVCSs) and the popularization of information technology, electricity price competition between fast-EVCSs is highly expected, in which the utilization of public…

Systems and Control · Electrical Eng. & Systems 2024-01-02 Sangjun Bae , Balazs Kulcsar , Sebastien Gros

We propose a Model Predictive Control (MPC) with a single-step prediction horizon to approximate the solution of infinite horizon optimal control problems with the expected sum of convex stage costs for constrained linear uncertain systems.…

Optimization and Control · Mathematics 2025-04-24 Eunhyek Joa , Francesco Borrelli

In recent years, prominent blockchain systems such as Bitcoin and Ethereum have experienced explosive growth in transaction volume, leading to frequent surges in demand for limited block space and causing transaction fees to fluctuate by…

Computer Science and Game Theory · Computer Science 2023-10-31 Matheus V. X. Ferreira , Daniel J. Moroz , David C. Parkes , Mitchell Stern

A power market with non-convexities may not have an equilibrium price for power that provides economic stability of the centralized dispatch outcome. In this case, the market players are entitled to receive the uplift payments that…

Optimization and Control · Mathematics 2020-07-03 Vadim Borokhov

The continuous introduction of renewable electricity and increased consumption through electrification of the transport and heating sector challenges grid stability. This study investigates load shifting through demand side management as a…

Systems and Control · Electrical Eng. & Systems 2023-07-04 Simon Thorsteinsson , Alex Arash Sand Kalaee , Pierre Vogler-Finck , Henrik Lund Stærmose , Ivan Katic , Jan Dimon Bendtsen

Short-term hydro-generation management poses a non-convex or even non-continuous optimization problem. For this reason, the problem of systematically obtaining feasible and economically satisfying solutions has not yet been completely…

Optimization and Control · Mathematics 2022-04-12 Jean-Philippe Chancelier , A Renaud

Wind energy has been integrated into the power system with the hope that it improves the energy efficiency and decreases greenhouse gas emission. However, several studies over the world imply that the result was in the opposite way that was…

Systems and Control · Electrical Eng. & Systems 2020-06-02 HyungSeon Oh

We consider the problem of dynamic pricing with limited supply. A seller has $k$ identical items for sale and is facing $n$ potential buyers ("agents") that are arriving sequentially. Each agent is interested in buying one item. Each…

Computer Science and Game Theory · Computer Science 2013-11-27 Moshe Babaioff , Shaddin Dughmi , Robert Kleinberg , Aleksandrs Slivkins

Demand response (DR) leverages demand-side flexibility, offering a promising approach to enhance market conditions like mitigating wholesale price spikes. However, poorly chosen DR locations can inadvertently increase electricity prices.…

Systems and Control · Electrical Eng. & Systems 2024-08-06 Yufan Zhang , Honglin Wen , Tao Feng , Yize Chen

The accurate prediction of short-term electricity prices is vital for effective trading strategies, power plant scheduling, profit maximisation and efficient system operation. However, uncertainties in supply and demand make such…

Econometrics · Economics 2023-04-20 Mira Watermeyer , Thomas Möbius , Oliver Grothe , Felix Müsgens

We address the challenging problem of dynamically pricing complementary items that are sequentially displayed to customers. An illustrative example is the online sale of flight tickets, where customers navigate through multiple web pages.…

The increasing interest in demand-side management (DSM) as part of the energy cost optimization calls for effective methods to determine representative electricity prices for energy optimization and scheduling investigations. We propose a…

Applications · Statistics 2026-01-15 Chrysanthi Papadimitriou , Jan C. Schulze , Alexander Mitsos

Mobile data traffic has been steadily rising in the past years. This has generated a significant interest in the deployment of incentive mechanisms to reduce peak-time congestion. Typically, the design of these mechanisms requires…

Networking and Internet Architecture · Computer Science 2016-11-17 Patrick Loiseau , Galina Schwartz , John Musacchio , Saurabh Amin , S. Shankar Sastry

This paper presents a marketing analytics framework that operationalizes subscription pricing as a dynamic, guardrailed decision system, uniting multivariate demand forecasting, segment-level price elasticity, and churn propensity to…

Machine Learning · Computer Science 2026-01-22 Deepit Sapru

This research investigates the implementation of a real-time, microservices-oriented dynamic pricing system for the travel sector. The system is designed to address factors such as demand, competitor pricing, and other external…

Computational Engineering, Finance, and Science · Computer Science 2024-11-05 Biman Barua , M. Shamim Kaiser

This paper finds near equilibrium prices for electricity markets with nonconvexities due to binary variables, in order to reduce the market participants' opportunity costs, such as generators' unrecovered costs. The opportunity cost is…

General Economics · Economics 2019-02-20 Hassan Shavandi , Mehrdad Pirnia , J. David Fuller

The relationship between demand and prices of a set of products can be modeled as a linear mapping from logarithmic price changes to logarithmic changes in demand. We consider the problem of estimating the coefficient matrix of this…

Optimization and Control · Mathematics 2026-04-15 Maximilian Schaller , Stephen Boyd
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