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Related papers: Dynamic Pricing in a Dual Market Environment

200 papers

We consider the use of pricing as a regulatory mechanism when an unknown number of autonomous agents compete for access to a shared resource (possibly limited in volume or capacity). In standard dynamic pricing control systems, an…

Optimization and Control · Mathematics 2025-11-24 Christopher King , Homayoun Hamedmoghadam , Christos G. Cassandras , Fabian R. Wirth , Robert N. Shorten

In this paper we study a continuous time stochastic inventory model for a commodity traded in the spot market and whose supply purchase is affected by price and demand uncertainty. A firm aims at meeting a random demand of the commodity at…

Optimization and Control · Mathematics 2015-06-12 Maria B. Chiarolla , Giorgio Ferrari , Gabriele Stabile

This paper studies a setting in which multiple suppliers compete for a buyer's procurement business. The buyer faces uncertain demand and there is a requirement to reserve capacity in advance of knowing the demand. Each supplier has costs…

Computer Science and Game Theory · Computer Science 2019-05-28 Edward Anderson , Bo Chen , Lusheng Shao

We study overpricing in a repeated game between two representative agents: a market maker, who controls market liquidity, and a market taker, who chooses trade quantities. Market prices evolve through the endogenous price impact of trades…

Trading and Market Microstructure · Quantitative Finance 2026-05-12 Luigi Foscari , Emanuele Guidotti , Nicolò Cesa-Bianchi , Tatjana Chavdarova , Alfio Ferrara

We initiate the study of contextual dynamic pricing with a heterogeneous population of buyers, where a seller repeatedly posts prices (over $T$ rounds) that depend on the observable $d$-dimensional context and receives binary purchase…

Machine Learning · Computer Science 2025-12-11 Thodoris Lykouris , Sloan Nietert , Princewill Okoroafor , Chara Podimata , Julian Zimmert

We consider a dynamic pricing problem for repeated contextual second-price auctions with multiple strategic buyers who aim to maximize their long-term time discounted utility. The seller has limited information on buyers' overall demand…

Machine Learning · Computer Science 2023-02-08 Negin Golrezaei , Patrick Jaillet , Jason Cheuk Nam Liang

With the recent technological feasibility of electronic commerce over the Internet, much attention has been given to the design of electronic markets for various types of electronically-tradable goods. Such markets, however, will normally…

Computer Science and Game Theory · Computer Science 2011-07-04 M. Babaioff , N. Nisan

We consider price competition among multiple sellers over a selling horizon of $T$ periods. In each period, sellers simultaneously offer their prices (which are made public) and subsequently observe their respective demand (not made…

Machine Learning · Statistics 2026-05-08 Daniele Bracale , Moulinath Banerjee , Cong Shi , Yuekai Sun

Motivated by a variety of online matching platforms, we consider demand and supply units which are located i.i.d. in [0,1]^d, and each demand unit needs to be matched with a supply unit. The goal is to minimize the expected average distance…

Probability · Mathematics 2023-10-10 Yash Kanoria

This paper focuses on the operation of an electricity market that accounts for participants that bid at a sub-minute timescale. To that end, we model the market-clearing process as a dynamical system, called market dynamics, which is…

Optimization and Control · Mathematics 2021-12-14 Pengcheng You , Yan Jiang , Enoch Yeung , Dennice F. Gayme , Enrique Mallada

This work's purpose is to understand the dynamics of limit order books in order-driven markets. We try to illustrate a dynamical trading mechanism attached to the microstructure of limit order markets. We capture the iterative nature of…

Trading and Market Microstructure · Quantitative Finance 2014-01-13 Shilei Wang

Contextual pricing strategies are prevalent in online retailing, where the seller adjusts prices based on products' attributes and buyers' characteristics. Although such strategies can enhance seller's profits, they raise concerns about…

Computer Science and Game Theory · Computer Science 2026-03-17 Pangpang Liu , Will Wei Sun

We propose and study a simple stochastic model for the dynamics of a limit order book, in which arrivals of market order, limit orders and order cancellations are described in terms of a Markovian queueing system. Through its analytical…

Trading and Market Microstructure · Quantitative Finance 2015-03-19 Rama Cont , Adrien De Larrard

In the field of fresh produce retail, vegetables generally have a relatively limited shelf life, and their quality deteriorates with time. Most vegetable varieties, if not sold on the day of delivery, become difficult to sell the following…

Econometrics · Economics 2024-09-17 Mingpu Ma

In an electric power system, demand fluctuations may result in significant ancillary cost to suppliers. Furthermore, in the near future, deep penetration of volatile renewable electricity generation is expected to exacerbate the variability…

Optimization and Control · Mathematics 2012-07-13 John N. Tsitsiklis , Yunjian Xu

Personalized pricing, which involves tailoring prices based on individual characteristics, is commonly used by firms to implement a consumer-specific pricing policy. In this process, buyers can also strategically manipulate their feature…

Machine Learning · Statistics 2024-06-27 Pangpang Liu , Zhuoran Yang , Zhaoran Wang , Will Wei Sun

In recent years, many new and interesting models of successful online business have been developed. Many of these are based on the competition between users, such as online auctions, where the product price is not fixed and tends to rise.…

Economics · Quantitative Finance 2016-03-01 Pierluigi Gallo , Francesco Randazzo , Ignazio Gallo

We consider mechanisms for markets that are double-sided and have players with multi-dimensional strategic spaces on at least one side. The players of the market are strategic, and act to optimize their own utilities. The mechanism…

Computer Science and Game Theory · Computer Science 2016-11-15 Moran Feldman , Rica Gonen

Previous research on two-dimensional extensions of Hotelling's location game has argued that spatial competition leads to maximum differentiation in one dimensions and minimum differentiation in the other dimension. We expand on existing…

General Economics · Economics 2021-03-23 Jeffrey D. Michler , Benjamin M. Gramig

We study a dynamic market setting where an intermediary interacts with an unknown large sequence of agents that can be either sellers or buyers: their identities, as well as the sequence length $n$, are decided in an adversarial, online…

Computer Science and Game Theory · Computer Science 2017-03-29 Yiannis Giannakopoulos , Elias Koutsoupias , Philip Lazos
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