Related papers: Testing Consumer Rationality using Perfect Graphs …
This paper unifies two key results from economic theory, namely, revealed rational inattention and classical revealed preference. Revealed rational inattention tests for rationality of information acquisition for Bayesian decision makers.…
A long series of previous papers have been devoted to the (one-dimensional) moment problem with nonnegative rational measure. The rationality assumption is a complexity constraint motivated by applications where a parameterization of the…
In electronic commerce (e-commerce)markets, a decision-maker faces a sequential choice problem. Third-party intervention is essential in making purchase decisions in this choice process. For instance, while purchasing products/services…
Two-sided marketplaces embody heterogeneity in incentives: producers seek exposure while consumers seek relevance, and balancing these competing objectives through constrained optimization is now a standard practice. Yet real platforms face…
We introduce a simple, efficient and precise polynomial heuristic for a key NP complete problem, minimum vertex cover. Our method is iterative and operates in probability space. Once a stable probability solution is found we find the true…
In this paper, we work in the framework of the Merton problem but we impose a drawdown constraint on the consumption process. This means that consumption can never fall below a fixed proportion of the running maximum of past consumption. In…
We consider a scenario where a retailer can set different prices for different consumers in a smart grid. The retailer's objective is to maximize the revenue, minimize the operating cost, and maximize the consumer's welfare. The retailer…
A typical goal of research in combinatorial optimization is to come up with fast algorithms that find optimal solutions to a computational problem. The process that takes a real-world problem and extracts a clean mathematical abstraction of…
We study a submodular maximization problem motivated by applications in online retail. A platform displays a list of products to a user in response to a search query. The user inspects the first $k$ items in the list for a $k$ chosen at…
Demand response (DR) programs play a crucial role in improving system reliability and mitigating price volatility by altering the core profile of electricity consumption. This paper proposes a game-theoretical model that captures the…
This paper proposes a method for estimating consumer preferences among discrete choices, where the consumer chooses at most one product in a category, but selects from multiple categories in parallel. The consumer's utility is additive in…
Advancements in mathematical programming have made it possible to efficiently tackle large-scale real-world problems that were deemed intractable just a few decades ago. However, provably optimal solutions may not be accepted due to the…
With the rise of the digital economy and an explosion of available information about consumers, effective personalization of goods and services has become a core business focus for companies to improve revenues and maintain a competitive…
The consumers' willingness to pay plays an important role in economic theory and in setting policy. For a market, this function can often be estimated from observed behavior -- preferences are revealed. However, economists would like to…
The Boolean satisfiability problem (SAT) is a well-known example of monotonic reasoning, of intense practical interest due to fast solvers, complemented by rigorous fine-grained complexity results. However, for non-monotonic reasoning,…
The 2008 financial crisis has been attributed to "excessive complexity" of the financial system due to financial innovation. We employ computational complexity theory to make this notion precise. Specifically, we consider the problem of…
Selling a single item to $n$ self-interested buyers is a fundamental problem in economics, where the two objectives typically considered are welfare maximization and revenue maximization. Since the optimal mechanisms are often impractical…
We consider the profit-maximization problem solved by an electricity retailer who aims at designing a menu of contracts. This is an extension of the unit-demand envy-free pricing problem: customers aim to choose a contract maximizing their…
Mechanism design is addressed in the context of fair allocations of indivisible goods with monetary compensation. Motivated by a real-world social choice problem, mechanisms with verification are considered in a setting where (i) agents'…
Given the family $P$ of all nonempty subsets of a set $U$ of alternatives, a choice over $U$ is a function $c \colon \Omega \to P$ such that $\Omega \subseteq P$ and $c(B) \subseteq B$ for all menus $B \in \Omega$. A choice is total if…