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In this paper we investigate a dynamic pricing model for constant demand elasticity where customers have a probability distribution on the number of items they order. This is a generalization from standard models which restrict customers to…

Optimization and Control · Mathematics 2018-03-01 Nyles Breecher , Richard Stockbridge

This paper studies a wireless network where multiple users cooperate with each other to improve the overall network performance. Our goal is to design an optimal distributed power allocation algorithm that enables user cooperation, in…

Networking and Internet Architecture · Computer Science 2016-11-17 Yuan Liu , Meixia Tao , Jianwei Huang

We study mechanisms for selling a single item when buyers have private costs for participating in the mechanism. An agent's participation cost can also be interpreted as an outside option value that she must forego to participate. This…

Computer Science and Game Theory · Computer Science 2023-11-07 Yannai A. Gonczarowski , Nicole Immorlica , Yingkai Li , Brendan Lucier

We consider a market in which both suppliers and consumers compete for a product via scalar-parameterized supply offers and demand bids. Scalar-parameterized offers/bids are appealing due to their modeling simplicity and desirable…

General Economics · Economics 2020-03-04 Mariola Ndrio , Khaled Alshehri , Subhonmesh Bose

The energy transition is expected to significantly increase the share of renewable energy sources whose production is intermittent in the electricity mix. Apart from key benefits, this development has the major drawback of generating a…

Trading and Market Microstructure · Quantitative Finance 2023-01-30 Thibaut Théate , Antonio Sutera , Damien Ernst

The proliferation of behind-the-meter (BTM) distributed energy resources (DER) within the electrical distribution network presents significant supply and demand flexibilities, but also introduces operational challenges such as voltage…

Systems and Control · Electrical Eng. & Systems 2024-09-13 Ahmed S. Alahmed , Guido Cavraro , Andrey Bernstein , Lang Tong

Motivated by recent progress on pricing in the AI literature, we study marketplaces that contain multiple vendors offering identical or similar products and unit-demand buyers with different valuations on these vendors. The objective of…

Budget-management systems are one of the key components of modern auction markets. Internet advertising platforms typically offer advertisers the possibility to pace the rate at which their budget is depleted, through budget-pacing…

Computer Science and Game Theory · Computer Science 2021-06-18 Andrea Celli , Riccardo Colini-Baldeschi , Christian Kroer , Eric Sodomka

Demand response (DR), as one of the important energy resources in the future's grid, provides the services of peak shaving, enhancing the efficiency of renewable energy utilization with a short response period, and low cost. Various…

Artificial Intelligence · Computer Science 2022-02-10 Kuan-Cheng Lee , Hong-Tzer Yang , Wenjun Tang

We are interested in mechanisms that maximize social welfare. In [1] this problem was studied for multi-unit auctions with unit demand bidders and for the public project problem, and in each case social welfare undominated mechanisms in the…

Computer Science and Game Theory · Computer Science 2008-10-20 Krzysztof R. Apt , Vangelis Markakis

This article presents a mathematical model of dynamic pricing for real estate (RE) that incorporates multiple pricing groups, thereby expanding the capabilities of existing models. The developed model solves the problem of maximizing…

Mathematical Finance · Quantitative Finance 2024-11-13 Lev Razumovskiy , Mariya Gerasimova , Nikolay Karenin , Mikhail Safro

We study approximation algorithms for revenue maximization based on static item pricing, where a seller chooses prices for various goods in the market, and then the buyers purchase utility-maximizing bundles at these given prices. We…

Computer Science and Game Theory · Computer Science 2017-05-03 Elliot Anshelevich , Shreyas Sekar

To choose between two discrete goods, a consumer pays attention to only those with prices below a threshold. From these, she chooses her most preferred good. We assume consumers in a population have the same preference but may have…

Theoretical Economics · Economics 2025-11-07 Kaushil Patel

Finding the optimal (revenue-maximizing) mechanism to sell multiple items has been a prominent and notoriously difficult open problem. Existing work has mainly focused on deriving analytical results tailored to a particular class of…

Theoretical Economics · Economics 2026-01-09 Kento Hashimoto , Keita Kuwahara , Reo Nonaka

This paper explores the integration of strategic optimization methods in search advertising, focusing on ad ranking and bidding mechanisms within E-commerce platforms. By employing a combination of reinforcement learning and evolutionary…

Machine Learning · Computer Science 2024-05-30 Chang Zhou , Yang Zhao , Jin Cao , Yi Shen , Xiaoling Cui , Chiyu Cheng

The author seeks to develop a model to alter the bid-offer spread, currently quoted by market makers, that varies with the market and trading conditions. The dynamic nature of financial markets and trading, as with the rest of social…

Economics · Quantitative Finance 2016-02-03 Ravi Kashyap

When online sellers use AI learning algorithms to automatically compete on e-commerce platforms, there is concern that they will learn to coordinate on higher than competitive prices. However, this concern was primarily raised in…

General Economics · Economics 2025-11-03 Hangcheng Zhao , Ron Berman

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

Internet advertisers (buyers) repeatedly procure ad impressions from ad platforms (sellers) with the aim to maximize total conversion (i.e. ad value) while respecting both budget and return-on-investment (ROI) constraints for efficient…

Computer Science and Game Theory · Computer Science 2023-02-08 Negin Golrezaei , Patrick Jaillet , Jason Cheuk Nam Liang , Vahab Mirrokni

The rapid expansion of distributed energy resources (DERs) is one of the most significant changes to electricity systems around the world. Examples of DERs include solar panels, small natural gas-fueled generators, combined heat and power…

Optimization and Control · Mathematics 2021-03-29 Zuguang Gao , Khaled Alshehri , John R. Birge