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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

Selecting which products to display and at what prices is a central decision in retail and e-commerce operations. In many applications, these two choices must be made jointly under limited display capacity and uncertain customer demand. In…

Optimization and Control · Mathematics 2026-04-22 Yunfan Zhang , Yuxuan Han , Hongyu Shan , Jose Blanchet , Zhengyuan Zhou

The predict-then-optimize (PTO) framework is a standard approach in data-driven decision-making, where a decision-maker first estimates an unknown parameter from historical data and then uses this estimate to solve an optimization problem.…

Optimization and Control · Mathematics 2025-07-29 Michael Albert , Max Biggs , Ningyuan Chen , Guan Wang

We study contextual search, a generalization of binary search in higher dimensions, which captures settings such as feature-based dynamic pricing. Standard formulations of this problem assume that agents act in accordance with a specific…

Machine Learning · Computer Science 2022-08-09 Akshay Krishnamurthy , Thodoris Lykouris , Chara Podimata , Robert Schapire

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…

Price prediction algorithms propose prices for every product or service according to market trends, projected demand, and other characteristics, including government rules, international transactions, and speculation and expectation. As the…

Machine Learning · Statistics 2024-04-01 Amir Eshaghi Chaleshtori

We study the problem of a seller dynamically pricing $d$ distinct types of indivisible goods, when faced with the online arrival of unit-demand buyers drawn independently from an unknown distribution. The goods are not in limited supply,…

Data Structures and Algorithms · Computer Science 2017-06-13 Aaron Roth , Aleksandrs Slivkins , Jonathan Ullman , Zhiwei Steven Wu

In the evolving landscape of digital commerce, adaptive dynamic pricing strategies are essential for gaining a competitive edge. This paper introduces novel {\em doubly nonparametric random utility models} that eschew traditional parametric…

Methodology · Statistics 2024-06-11 Elynn Chen , Xi Chen , Lan Gao , Jiayu Li

Employing probabilistic techniques we compute best possible upper and lower bounds on the price of an option on one or two assets with continuous piecewise linear payoff function based on prices of simple call options of possibly distinct…

Probability · Mathematics 2008-12-02 Dimitris Bertsimas , Natasha Bushueva

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 study the framework of a dynamic decision-making scenario with resource constraints. In this framework, an agent, whose target is to maximize the total reward under the initial inventory, selects an action in each round upon observing a…

Machine Learning · Computer Science 2024-12-19 Zhaohua Chen , Rui Ai , Mingwei Yang , Yuqi Pan , Chang Wang , Xiaotie Deng

This paper examines whether one can learn to play an optimal action while only knowing part of true specification of the environment. We choose the optimal pricing problem as our laboratory, where the monopolist is endowed with an…

Theoretical Economics · Economics 2022-07-22 In-Koo Cho , Jonathan Libgober

When randomness in demand affects the sales of a product, retailers use dynamic pricing strategies to maximize their profits. In this article, we formulate the pricing problem as a continuous-time stochastic optimal control problem and find…

Optimization and Control · Mathematics 2019-03-13 Asbjørn Nilsen Riseth

This paper presents a new dynamic pricing model (a.k.a. real-time pricing) that reflects startup costs of generators. Dynamic pricing, which is a method to control demand by pricing electricity at hourly (or more often) intervals, has been…

Optimization and Control · Mathematics 2014-03-06 Naoki Ito , Akiko Takeda , Toru Namerikawa

We study the problem of designing posted-price mechanisms in order to sell a single unit of a single item within a finite period of time. Motivated by real-world problems, such as, e.g., long-term rental of rooms and apartments, we assume…

Computer Science and Game Theory · Computer Science 2020-12-11 Giulia Romano , Gianluca Tartaglia , Alberto Marchesi , Nicola Gatti

Reasonable pricing of data products enables data trading platforms to maximize revenue and foster the growth of the data trading market. The textual semantics of data products are vital for pricing and contain significant value that remains…

Computational Engineering, Finance, and Science · Computer Science 2026-02-24 Ruize Gao , Feng Xiao , Jinpu Li , Shaoze Cui

A firm that sells a non perishable product considers intertemporal price discrimination in the objective of maximizing its long-run average revenue. We consider a general model of patient customers with changing valuations. Arriving…

Optimization and Control · Mathematics 2020-02-17 Araman Victor , Fayad Bassam

We consider a high-dimensional dynamic pricing problem under non-stationarity, where a firm sells products to $T$ sequentially arriving consumers that behave according to an unknown demand model with potential changes at unknown times. The…

Methodology · Statistics 2023-03-21 Zifeng Zhao , Feiyu Jiang , Yi Yu , Xi Chen

Algorithmic pricing is the computational problem that sellers (e.g., in supermarkets) face when trying to set prices for their items to maximize their profit in the presence of a known demand. Guruswami et al. (2005) propose this problem…

Computer Science and Game Theory · Computer Science 2008-08-13 Shuchi Chawla , Jason Hartline , Robert Kleinberg

We study the optimal pricing strategy of a monopolist selling homogeneous goods to customers over multiple periods. The customers choose their time of purchase to maximize their payoff that depends on their valuation of the product, the…

Computer Science and Game Theory · Computer Science 2018-06-28 Ali Makhdoumi , Azarakhsh Malekian , Asuman Ozdaglar
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