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In this paper, we consider the classic stochastic (dynamic) knapsack problem, a fundamental mathematical model in revenue management, with general time-varying random demand. Our main goal is to study the optimal policies, which can be…

Optimization and Control · Mathematics 2018-07-19 Yingdong Lu

The stochastic knapsack has been used as a model in wide ranging applications from dynamic resource allocation to admission control in telecommunication. In recent years, a variation of the model has become a basic tool in studying problems…

Pricing of Securities · Quantitative Finance 2008-12-02 Grace Lin , Yingdong Lu , David Yao

We develop a novel mathematical programming approximation framework to tackle the stochastic knapsack problem. In this problem, the decision maker considers items for which either weights or values, or both, are random. The aim is to select…

Optimization and Control · Mathematics 2025-12-18 Roberto Rossi , Steven D. Prestwich , S. Armagan Tarim

This study introduces an optimal mechanism in a dynamic stochastic knapsack environment. The model features a single seller who has a fixed quantity of a perfectly divisible item. Impatient buyers with a piece-wise linear utility function…

Computer Science and Game Theory · Computer Science 2024-02-23 Jihyeok Jung , Chan-Oi Song , Deok-Joo Lee , Kiho Yoon

This work addresses competitive resource allocation in a sequential setting, where two players allocate resources across objects or locations of shared interest. Departing from the simultaneous Colonel Blotto game, our framework introduces…

Computer Science and Game Theory · Computer Science 2025-04-24 Omkar Thakoor , Rajgopal Kannan , Victor Prasanna

We introduce a simple stochastic dynamics for game theory. It assumes ``local'' rationality in the sense that any player climbs the gradient of his utility function in the presence of a stochastic force which represents deviation from…

Statistical Mechanics · Physics 2008-11-23 Matteo Marsili , Yi-Cheng Zhang

We revisit the Stochastic Knapsack problem, where a policy-maker chooses an execution order for jobs with fixed values and stochastic running-times, aiming to maximize the value completed by a deadline. Dean et al. (FOCS'04) show that…

Computer Science and Game Theory · Computer Science 2026-02-18 Zohar Barak , Asnat Berlin , Ilan Reuven Cohen , Alon Eden , Omri Porat , Inbal Talgam-Cohen

Stochastic knapsack problem originally was a versatile model for controls in telecommunication networks. Recently, it draws attentions of revenue management community by serving as a basic model for allocating resources over time. We…

Optimization and Control · Mathematics 2008-05-13 Yingdong Lu

The multiple knapsack problem (MKP) generalizes the classical knapsack problem by assigning items to multiple knapsacks subject to capacity constraints. It is used to model many real-world resource allocation and scheduling problems. In…

Neural and Evolutionary Computing · Computer Science 2026-04-14 Ishara Hewa Pathiranage , Aneta Neumann

Two traditional paradigms are often used to describe the behavior of agents in multi-agent complex systems. In the first one, agents are considered to be fully rational and systems are seen as multi-player games. In the second one, agents…

Computer Science and Game Theory · Computer Science 2016-03-17 Mickael Randour

New continuous and stochastic extensions of the minority game, devised as a fundamental model for a market of competitive agents, are introduced and studied in the context of statistical physics. The new formulation reproduces the key…

Statistical Mechanics · Physics 2009-10-31 Andrea Cavagna , Juan P. Garrahan , Irene Giardina , David Sherrington

We study a stochastic differential game in a ruin theoretic environment. In our setting two insurers compete for market share, which is represented by a joint performance functional. Consequently, one of the insurers strives to maximize it,…

Optimization and Control · Mathematics 2025-03-27 Lea Enzi , Stefan Thonhauser

In E-commerce, advertising is essential for merchants to reach their target users. The typical objective is to maximize the advertiser's cumulative revenue over a period of time under a budget constraint. In real applications, an…

This paper deals with a standard stochastic game model with a continuum of states under the duel-type setup. It newly proposes a hybrid model of game theory and the fluctuation process, which could be applied for various practical decision…

Optimization and Control · Mathematics 2020-08-10 Song-Kyoo Kim

We study revenue optimization in a repeated auction between a single seller and a single buyer. Traditionally, the design of repeated auctions requires strong modeling assumptions about the bidder behavior, such as it being myopic, infinite…

Computer Science and Game Theory · Computer Science 2019-03-12 Shipra Agrawal , Constantinos Daskalakis , Vahab Mirrokni , Balasubramanian Sivan

Building on the macroscopic market making framework as a control problem, this paper investigates its extension to stochastic games. In the context of price competition, each agent is benchmarked against the best quote offered by the…

Trading and Market Microstructure · Quantitative Finance 2025-10-14 Ivan Guo , Shijia Jin

This paper investigates inventory management in a multi channel distribution system consisting of one manufacturer and an arbitrary number of retailers that face stochastic demand. Existence of the pure Nash equilibrium is proved and…

Computer Science and Game Theory · Computer Science 2009-06-02 Mahtab Hoseininia , Farzad Didehvar , Mir Mehdi Seyyed Esfahani

We propose a stochastic first-order algorithm to learn the rationality parameters of simultaneous and non-cooperative potential games, i.e., the parameters of the agents' optimization problems. Our technique combines (i.) an active-set step…

Optimization and Control · Mathematics 2023-07-31 Stefan Clarke , Gabriele Dragotto , Jaime Fernández Fisac , Bartolomeo Stellato

In this paper, the problem of smart grid energy management under stochastic dynamics is investigated. In the considered model, at the demand side, it is assumed that customers can act as prosumers who own renewable energy sources and can…

Computer Science and Game Theory · Computer Science 2017-08-08 Seyed Rasoul Etesami , Walid Saad , Narayan Mandayam , H. Vincent Poor

Much work in computer science has adopted competitive analysis as a tool for decision making under uncertainty. In this work we extend competitive analysis to the context of multi-agent systems. Unlike classical competitive analysis where…

Artificial Intelligence · Computer Science 2007-05-23 Moshe Tennenholtz
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