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We introduce a new approach for the numerical pricing of American options. The main idea is to choose a finite number of suitable excessive functions (randomly) and to find the smallest majorant of the gain function in the span of these…

Computational Finance · Quantitative Finance 2013-10-17 Sören Christensen

In several applications of automatic diagnosis and active learning a central problem is the evaluation of a discrete function by adaptively querying the values of its variables until the values read uniquely determine the value of the…

Data Structures and Algorithms · Computer Science 2014-07-29 Ferdinando Cicalese , Eduardo Laber , Aline Medeiros Saettler

We show that the Revenue-Optimal Deterministic Mechanism Design problem for a single additive buyer is #P-hard, even when the distributions have support size 2 for each item and, more importantly, even when the optimal solution is…

Computer Science and Game Theory · Computer Science 2017-07-17 Xi Chen , George Matikas , Dimitris Paparas , Mihalis Yannakakis

This paper considers the problem of designing a dynamical system to solve constrained optimization problems in a distributed way and in an anytime fashion (i.e., such that the feasible set is forward invariant). For problems with separable…

Optimization and Control · Mathematics 2023-09-07 Pol Mestres , Jorge Cortés

We consider multi-agent systems with general information networks where an agent may only observe a subset of other agents. A system designer assigns local utility functions to the agents guiding their actions towards an outcome which…

Computer Science and Game Theory · Computer Science 2025-01-30 Vartika Singh , Will Wesley , Philip N. Brown

In this paper we formulate a contract design problem where a primary license holder wishes to profit from its excess spectrum capacity by selling it to potential secondary users/buyers. It needs to determine how to optimally price the…

Computational Engineering, Finance, and Science · Computer Science 2012-07-30 Shang-Pin Sheng , Mingyan Liu

The ongoing debate over net neutrality covers a broad set of issues related to the regulation of public networks. In two ways, we extend an idealized usage-priced game-theoretic framework based on a common linear demand-response model.…

Networking and Internet Architecture · Computer Science 2010-10-22 Eitan Altman , Stéphane Caron , George Kesidis

Recently, there is growing interest and need for dynamic pricing algorithms, especially, in the field of online marketplaces by offering smart pricing options for big online stores. We present an approach to adjust prices based on the…

Optimization and Control · Mathematics 2021-01-13 David Müller , Yurii Nesterov , Vladimir Shikhman

A fundamental goal in the design of IaaS service is to enable both user-friendly and cost-effective service access, while attaining high resource efficiency for revenue maximization. QoS differentiation is an important lens to achieve this…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-03-28 Xiaohu Wu , Francesco De Pellegrini

We consider a platform's problem of collecting data from privacy sensitive users to estimate an underlying parameter of interest. We formulate this question as a Bayesian-optimal mechanism design problem, in which an individual can share…

Computer Science and Game Theory · Computer Science 2023-09-07 Alireza Fallah , Ali Makhdoumi , Azarakhsh Malekian , Asuman Ozdaglar

Distributed and iterative network utility maximization algorithms, such as the primal-dual algorithms or the network-user decomposition algorithms, often involve trajectories where the iterates may be infeasible, convergence to the optimal…

Optimization and Control · Mathematics 2018-12-11 Akhil P T , Rajesh Sundaresan

We consider an energy provider whose goal is to simultaneously set revenue-maximizing prices and meet a peak load constraint. In our bilevel setting, the provider acts as a leader (upper level) that takes into account a smart grid (lower…

Optimization and Control · Mathematics 2016-01-22 Sezin Afsar , Luce Brotcorne , Patrice Marcotte , Gilles Savard

The energy transition is expected to significantly increase the share of renewable energy sources whose production is intermittent in the electricity mix. Apart from key benefits, this development has the major drawback of generating a…

Trading and Market Microstructure · Quantitative Finance 2023-01-30 Thibaut Théate , Antonio Sutera , Damien Ernst

Motivated by the dynamic assortment offerings and item pricings occurring in e-commerce, we study a general problem of allocating finite inventories to heterogeneous customers arriving sequentially. We analyze this problem under the…

Data Structures and Algorithms · Computer Science 2019-05-14 Will Ma , David Simchi-Levi

This paper focuses on the problem of finding a particular data recommendation strategy based on the user preferences and a system expected revenue. To this end, we formulate this problem as an optimization by designing the recommendation…

Information Theory · Computer Science 2024-12-20 Shanyun Liu , Yunquan Dong , Pingyi Fan , Rui She , Shuo Wan

In many realistic problems of allocating resources, economy efficiency must be taken into consideration together with social equality, and price rigidities are often made according to some economic and social needs. We study the…

Computer Science and Game Theory · Computer Science 2014-05-27 Wei Huang , Jian Lou , Zhonghua Wen

We investigate revenue maximization problems in auctions for dynamic spectrum access. We consider the frequency division and spread spectrum methods of dynamic spectrum sharing. In the frequency division method, a primary spectrum user…

Optimization and Control · Mathematics 2011-05-31 Ali Kakhbod , Ashutosh Nayyar , Demosthenis Teneketzis

We consider the problem of a firm seeking to use personalized pricing to sell an exogenously given stock of a product over a finite selling horizon to different consumer types. We assume that the type of an arriving consumer can be observed…

Machine Learning · Computer Science 2021-10-08 Ningyuan Chen , Guillermo Gallego

In this paper we study a revenue maximization problem for optical routing nodes. We model the routing node as a single server polling model with the aim to assign visit periods (service windows) to the different stations (ports) such that…

Optimization and Control · Mathematics 2016-02-03 Murtuza Ali Abidini , Onno Boxma , Ton Koonen , Jacques Resing

In the present work we tackle the problem of finding the optimal price tariff to be set by a risk-averse electric retailer participating in the pool and whose customers are price-sensitive. We assume that the retailer has access to a…

Optimization and Control · Mathematics 2022-02-24 Román Pérez-Santalla , Miguel Carrión , Carlos Ruiz
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