English
Related papers

Related papers: Dynamic Pricing for Airline Ancillaries with Custo…

200 papers

Ride-hailing marketplaces like Uber and Lyft use dynamic pricing, often called surge, to balance the supply of available drivers with the demand for rides. We study driver-side payment mechanisms for such marketplaces, presenting the…

Computer Science and Game Theory · Computer Science 2021-03-09 Nikhil Garg , Hamid Nazerzadeh

We consider an intermediary's problem of dynamically matching demand and supply of heterogeneous types in a periodic-review fashion. More specifically, there are two disjoint sets of demand and supply types, and a reward associated with…

Optimization and Control · Mathematics 2018-11-20 Ming Hu , Yun Zhou

Automated Market Makers (AMMs) are emerging as a popular decentralised trading platform. In this work, we determine the optimal dynamic fees in a constant function market maker. We find approximate closed-form solutions to the control…

Trading and Market Microstructure · Quantitative Finance 2025-06-26 Leonardo Baggiani , Martin Herdegen , Leandro Sánchez-Betancourt

Many payment platforms hold large-scale marketing campaigns, which allocate incentives to encourage users to pay through their applications. To maximize the return on investment, incentive allocations are commonly solved in a two-stage…

Machine Learning · Computer Science 2022-01-03 Xuanying Chen , Zhining Liu , Li Yu , Sen Li , Lihong Gu , Xiaodong Zeng , Yize Tan , Jinjie Gu

Pricing algorithms have demonstrated the capability to learn tacit collusion that is largely unaddressed by current regulations. Their increasing use in markets, including oligopolistic industries with a history of collusion, calls for…

Computer Science and Game Theory · Computer Science 2025-02-26 Paul Friedrich , Barna Pásztor , Giorgia Ramponi

Accurate travel products price forecasting is a highly desired feature that allows customers to take informed decisions about purchases, and companies to build and offer attractive tour packages. Thanks to machine learning (ML), it is now…

Applications · Statistics 2021-06-10 Rosa Candela , Pietro Michiardi , Maurizio Filippone , Maria A. Zuluaga

This paper introduces a novel contextual bandit algorithm for personalized pricing under utility fairness constraints in scenarios with uncertain demand, achieving an optimal regret upper bound. Our approach, which incorporates dynamic…

Machine Learning · Statistics 2023-11-29 Xi Chen , David Simchi-Levi , Yining Wang

The proliferation of ride sharing systems is a major drive in the advancement of autonomous and electric vehicle technologies. This paper considers the joint routing, battery charging, and pricing problem faced by a profit-maximizing…

Systems and Control · Electrical Eng. & Systems 2020-10-05 Berkay Turan , Ramtin Pedarsani , Mahnoosh Alizadeh

We study an online dynamic pricing problem where the potential demand at each time period $t=1,2,\ldots, T$ is stochastic and dependent on the price. However, a perishable inventory is imposed at the beginning of each time $t$, censoring…

Machine Learning · Statistics 2026-01-26 Jianyu Xu , Yining Wang , Xi Chen , Yu-Xiang Wang

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

With the rapid growth in the fashion e-commerce industry, it is becoming extremely challenging for the E-tailers to set an optimal price point for all the products on the platform. By establishing an optimal price point, they can maximize…

Machine Learning · Computer Science 2020-08-25 Sajan Kedia , Samyak Jain , Abhishek Sharma

This paper proposes a novel method for demand forecasting in a pricing context. Here, modeling the causal relationship between price as an input variable to demand is crucial because retailers aim to set prices in a (profit) optimal manner…

A natural optimization model that formulates many online resource allocation and revenue management problems is the online linear program (LP) in which the constraint matrix is revealed column by column along with the corresponding…

Data Structures and Algorithms · Computer Science 2014-04-10 Shipra Agrawal , Zizhuo Wang , Yinyu Ye

We consider a seller who offers services to a buyer with multi-unit demand. Prior to the realization of demand, the buyer receives a noisy signal of their future demand, and the seller can design contracts based on the reported value of…

Theoretical Economics · Economics 2025-02-13 Dirk Bergemann , Michael C. Wang

In this paper, we propose a realistic multiple dynamic pricing approach to demand response in the retail market. First, an adaptive clustering-based customer segmentation framework is proposed to categorize customers into different groups…

Systems and Control · Electrical Eng. & Systems 2021-06-11 Fanlin Meng , Qian Ma , Zixu Liu , Xiao-Jun Zeng

Renewable energy brings huge uncertainties to the power system, which challenges the traditional power system operation with limited flexible resources. One promising solution is to introduce dynamic pricing to more consumers, which, if…

Systems and Control · Electrical Eng. & Systems 2019-11-19 Jiaman Wu , Zhiqi Wang , Yang Yu , Chenye Wu

The current Air Traffic Management (ATM) system worldwide has reached its limits in terms of predictability, efficiency and cost effectiveness. Different initiatives worldwide propose trajectory-oriented transformations that require high…

Machine Learning · Computer Science 2020-05-19 Alevizos Bastas , Theocharis Kravaris , George A. Vouros

The theoretical landscape of transportation cost planning is shifting from deterministic linear models to dynamic, data-driven optimization. As supply chains face volatility, static 20th-century cost assumptions prove increasingly…

Theoretical Economics · Economics 2025-12-12 Samuel Darwisman

We introduce a combinatorial optimization-enriched machine learning pipeline and a novel learning paradigm to solve inventory routing problems with stochastic demand and dynamic inventory updates. After each inventory update, our approach…

Optimization and Control · Mathematics 2024-02-08 Toni Greif , Louis Bouvier , Christoph M. Flath , Axel Parmentier , Sonja U. K. Rohmer , Thibaut Vidal

We propose AI-CARGO, a revenue management system for air-cargo that combines machine learning prediction with decision-making using mathematical optimization methods. AI-CARGO addresses a problem that is unique to the air-cargo business,…

Artificial Intelligence · Computer Science 2019-05-23 Stefano Giovanni Rizzo , Ji Lucas , Zoi Kaoudi , Jorge-Arnulfo Quiane-Ruiz , Sanjay Chawla