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We examine a stochastic formulation for data-driven optimization wherein the decision-maker is not privy to the true distribution, but has knowledge that it lies in some hypothesis set and possesses a historical data set, from which…

Optimization and Control · Mathematics 2023-09-21 Gar Goei Loke , Taozeng Zhu , Ruiting Zuo

The Predict-Then-Optimize framework uses machine learning models to predict unknown parameters of an optimization problem from exogenous features before solving. This setting is common to many real-world decision processes, and recently it…

Machine Learning · Computer Science 2024-09-10 James Kotary , Vincenzo Di Vito , Jacob Cristopher , Pascal Van Hentenryck , Ferdinando Fioretto

We introduce an approximation strategy for the discounted moments of a stochastic process that can, for a large class of problems, approximate the true moments. These moments appear in pricing formulas of financial products such as bonds…

Mathematical Finance · Quantitative Finance 2021-11-02 Chenyu Zhao , Misha van Beek , Peter Spreij , Makhtar Ba

We consider the problem of computing a positive definite $p \times p$ inverse covariance matrix aka precision matrix $\theta=(\theta_{ij})$ which optimizes a regularized Gaussian maximum likelihood problem, with the elastic-net regularizer…

Statistics Theory · Mathematics 2015-09-02 Yves F. Atchadé , Rahul Mazumder , Jie Chen

We consider a feature-based personalized pricing problem in which the buyer is strategic: given the seller's pricing policy, the buyer can augment the features that they reveal to the seller to obtain a low price for the product. We model…

Optimization and Control · Mathematics 2024-08-19 Zhi Chen , Bradley Sturt , Weijun Xie

The assortment problem in revenue management is the problem of deciding which subset of products to offer to consumers in order to maximise revenue. A simple and natural strategy is to select the best assortment out of all those that are…

Data Structures and Algorithms · Computer Science 2019-02-22 Gerardo Berbeglia , Gwenaël Joret

We study revenue maximization through sequential posted-price (SPP) mechanisms in single-dimensional settings with $n$ buyers and independent but not necessarily identical value distributions. We construct the SPP mechanisms by considering…

Computer Science and Game Theory · Computer Science 2021-01-11 Hedyeh Beyhaghi , Negin Golrezaei , Renato Paes Leme , Martin Pal , Balasubramanian Sivan

We study a sequential profit-maximization problem, optimizing for both price and ancillary variables like marketing expenditures. Specifically, we aim to maximize profit over an arbitrary sequence of multiple demand curves, each dependent…

Machine Learning · Computer Science 2024-07-09 Joon Suk Huh , Ellen Vitercik , Kirthevasan Kandasamy

Mathematical optimization, although often leading to NP-hard models, is now capable of solving even large-scale instances within reasonable time. However, the primary focus is often placed solely on optimality. This implies that while…

Optimization and Control · Mathematics 2025-12-23 Kevin-Martin Aigner , Marc Goerigk , Michael Hartisch , Frauke Liers , Arthur Miehlich , Florian Rösel

We introduce a new framework for optimal routing and arbitrage in AMM driven markets. This framework improves on the original best-practice convex optimization by restricting the search to the boundary of the optimal space. We can…

Mathematical Finance · Quantitative Finance 2025-02-13 Stefan Loesch , Mark Bentley Richardson

This paper derives polynomial-time approximation schemes for several NP-hard stochastic optimization problems from the algorithmic mechanism design and operations research literatures. The problems we consider involve a principal or seller…

Computer Science and Game Theory · Computer Science 2025-09-18 Robin Bowers , Marius Garbea , Emmanouil Pountourakis , Samuel Taggart

Pricing advanced data products - particularly in complex fields such as semiconductor manufacturing - is a fundamentally challenging task due to the sparsity of publicly available transaction data, and its frequent heterogeneity and…

Computational Finance · Quantitative Finance 2026-02-03 Adam L. Siemiatkowski , Victor Zhirnov , Kashyap Yellai , Gabriella Bein , Terresa Zimmerman

We consider the revenue management problem of finding profit-maximising prices for delivery time slots in the context of attended home delivery. This multi-stage optimal control problem admits a dynamic programming formulation that is…

Optimization and Control · Mathematics 2020-08-04 Denis Lebedev , Kostas Margellos , Paul Goulart

The topics treated in this thesis are inherently two-fold. The first part considers the problem of a market maker optimally setting bid/ask quotes over a finite time horizon, to maximize her expected utility. The intensities of the orders…

Optimization and Control · Mathematics 2020-09-15 Diego Zabaljauregui

In recent years, quantitative investment methods combined with artificial intelligence have attracted more and more attention from investors and researchers. Existing related methods based on the supervised learning are not very suitable…

Machine Learning · Computer Science 2021-05-11 Sihang Chen , Weiqi Luo , Chao Yu

Optimizing resource allocation with predicted information has shown promising gain in boosting network performance and improving user experience. Earlier research efforts focus on optimizing proactive policies under the assumption of…

Systems and Control · Electrical Eng. & Systems 2020-05-20 Jiajun Wu , Chengjian Sun , Chenyang Yang

In this paper, we study the assortment optimization problem under the mixed-logit customer choice model. While assortment optimization has been a major topic in revenue management for decades, the mixed-logit model is considered one of the…

Optimization and Control · Mathematics 2024-07-29 Hoang Giang Pham , Tien Mai

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

Optimization under uncertainty deals with the problem of optimizing stochastic cost functions given some partial information on their inputs. These problems are extremely difficult to solve and yet pervade all areas of technological and…

Statistical Mechanics · Physics 2015-03-13 Fabrizio Altarelli , Alfredo Braunstein , Abolfazl Ramezanpour , Riccardo Zecchina

We propose an innovative data-driven option pricing methodology that relies exclusively on the dataset of historical underlying asset prices. While the dataset is rooted in the objective world, option prices are commonly expressed as…

Pricing of Securities · Quantitative Finance 2024-01-23 Min Dai , Hanqing Jin , Xi Yang