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Linear Fisher market is one of the most fundamental economic models. The market is traditionally examined on the basis of individual's price-taking behavior. However, this assumption breaks in markets such as online advertising and…

Computer Science and Game Theory · Computer Science 2024-07-17 Juncheng Li , Pingzhong Tang

We introduce a fully probabilistic framework of consumer product choice based on quality assessment. It allows us to capture many aspects of marketing such as partial information asymmetry, quality differentiation, and product placement in…

Trading and Market Microstructure · Quantitative Finance 2009-01-06 Linyuan Lü , Matus Medo , Yi-Cheng Zhang , Damien Challet

Motivated by applications such as voluntary carbon markets and educational testing, we consider a market for goods with varying but hidden levels of quality in the presence of a third-party certifier. The certifier can provide informative…

Computer Science and Game Theory · Computer Science 2023-02-01 Andreas A. Haupt , Nicole Immorlica , Brendan Lucier

A monopolistic seller aims to sell an indivisible item to multiple potential buyers. Each buyer's valuation depends on their private type and the item's quality. The seller can observe the quality but it is unknown to buyers. This quality…

Computer Science and Game Theory · Computer Science 2024-11-13 Zhikang Fan , Weiran Shen

We consider an environment where sellers compete over buyers. All sellers are a-priori identical and strategically signal buyers about the product they sell. In a setting motivated by on-line advertising in display ad exchanges, where firms…

Computer Science and Game Theory · Computer Science 2012-03-30 Gleb Polevoy , Rann Smorodinsky , Moshe Tennenholtz

We are interested in the effect of consumer demand estimation error for new products in the context of production planning. An inventory model is proposed, whereby demand is influenced by price and advertising. The effect of parameter…

Optimization and Control · Mathematics 2015-10-23 Antoine Deza , Kai Huang , Michael R. Metel

We study the interplay of fairness, welfare, and equity considerations in personalized pricing based on customer features. Sellers are increasingly able to conduct price personalization based on predictive modeling of demand conditional on…

Machine Learning · Computer Science 2020-12-29 Nathan Kallus , Angela Zhou

We consider a nonlinear pricing environment with private information. We provide profit guarantees (and associated mechanisms) that the seller can achieve across all possible distributions of willingness to pay of the buyers. With a…

Theoretical Economics · Economics 2023-02-01 Dirk Bergemann , Tibor Heumann , Stephen Morris

We analyze competition on nonlinear prices in homogeneous goods markets with consumer search. In equilibrium firms offer two-part tariffs consisting of a linear price and lump-sum fee. The equilibrium production is socially efficient as the…

Theoretical Economics · Economics 2021-10-01 Atabek Atayev

This paper revisits the classic instrument choice problem in a setting with consumption externalities, through the lens of robust mechanism design. A regulator can implement any incentive-compatible policy but is uncertain about how…

General Economics · Economics 2026-03-18 Zi Yang Kang

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

Image segmentation is an important component of many image understanding systems. It aims to group pixels in a spatially and perceptually coherent manner. Typically, these algorithms have a collection of parameters that control the degree…

Computer Vision and Pattern Recognition · Computer Science 2018-02-02 Marc Bosch , Christopher M. Gifford , Austin G. Dress , Clare W. Lau , Jeffrey G. Skibo , Gordon A. Christie

Personalization, including both self-selected and pre-selected, is inevitable when tremendous amounts of media content are available. Personalization, which is believed to cause people to consume fewer diverse contents, can lead to…

Computers and Society · Computer Science 2018-11-01 Kota Kakiuchi , Fujio Toriumi , Masanori Takano , Kazuya Wada , Ichiro Fukuda

In markets with budget-constrained buyers, competitive equilibria need not be efficient in the utilitarian sense, or maximise the seller's revenue. We consider a setting with multiple divisible goods. Competitive equilibrium outcomes, and…

Theoretical Economics · Economics 2025-04-09 Simon Finster , Paul W. Goldberg , Edwin Lock

In my dissertation, I will analyze how the product market position of a mobile app affects its pricing strategies, which in turn impacts an app's monetization process. Using natural language processing and k-mean clustering on apps' text…

General Economics · Economics 2023-05-17 Naixin Zhu

We study the dynamic pricing problem faced by a monopolistic retailer who sells a storable product to forward-looking consumers. In this framework, the two major pricing policies (or mechanisms) studied in the literature are the…

Computer Science and Game Theory · Computer Science 2018-06-06 Gerardo Berbeglia , Gautam Rayaprolu , Adrian Vetta

We study buyer-optimal procurement mechanisms when quality is contractible. When some costs are borne by every participant of a procurement auction regardless of winning, the classic analysis should be amended. We show that an optimal…

Theoretical Economics · Economics 2024-11-20 Pasha Andreyanov , Ilia Krasikov , Alex Suzdaltsev

Most products are produced and sold by supply chain networks, where an interconnected network of producers and intermediaries set prices to maximize their profits. I show that there exists a unique equilibrium in a price-setting game on a…

Computer Science and Game Theory · Computer Science 2019-04-16 Toomas Hinnosaar

Cross-group externalities and network effects in two-sided platform markets shape market structure and competition policy, and are the subject of extensive study. Less understood are the within-group externalities that arise when the…

Theoretical Economics · Economics 2020-11-10 Quitzé Valenzuela-Stookey

The existing studies on consumer search agree that consumers are worse-off when they do not observe sellers' production marginal cost than when they do. In this paper we challenge this conclusion. Employing a canonical model of simultaneous…

Theoretical Economics · Economics 2022-06-10 Atabek Atayev