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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

The growing share of proactive actors in the electricity markets calls for more attention on prosumers and more support for their decision-making under decentralized electricity markets. In view of the changing paradigm, it is crucial to…

Optimization and Control · Mathematics 2021-05-24 Ni Wang , Remco Verzijlbergh , Petra Heijnen , Paulien Herder

A seller is pricing identical copies of a good to a stream of unit-demand buyers. Each buyer has a value on the good as his private information. The seller only knows the empirical value distribution of the buyer population and chooses the…

Computer Science and Game Theory · Computer Science 2023-05-12 Siddhartha Banerjee , Kamesh Munagala , Yiheng Shen , Kangning Wang

This paper studies a sale promotion mechanism design problem on a social network, where a node (a seller) sells one item to the other nodes on the network to maximize her revenue. However, the seller does not know other nodes except for her…

Computer Science and Game Theory · Computer Science 2020-02-28 Wen Zhang , Dengji Zhao , Yao Zhang

As the number of prosumers with distributed energy resources (DERs) grows, the conventional centralized operation scheme may suffer from conflicting interests, privacy concerns, and incentive inadequacy. In this paper, we propose an energy…

Computer Science and Game Theory · Computer Science 2022-06-29 Yue Chen , Changhong Zhao , Steven H. Low , Adam Wierman

We design a fixed-price auction mechanism for a seller to sell multiple items in a tree-structured market. The buyers have independently drawn valuation from a uniform distribution, and the seller would like to incentivize buyers to invite…

Computer Science and Game Theory · Computer Science 2024-08-01 Feiyang Yu

A seller with one unit of a good faces N\geq3 buyers and a single competitor who sells one other identical unit in a second-price auction with a reserve price. Buyers who do not get the seller's good will compete in the competitor's…

Theoretical Economics · Economics 2021-10-26 Kenneth Hendricks , Thomas Wiseman

In this paper, we consider the optimal dividend problem for a company. We describe the surplus process of the company by a diffusion model with regime switching. The aim of the company is to choose a dividend policy to maximize the expected…

Mathematical Finance · Quantitative Finance 2014-07-01 Xiaoxiao Zheng , Xin Zhang

We consider a principal seller with $m$ heterogeneous products to sell to an additive buyer over independent items. The principal can offer an arbitrary menu of product bundles, but faces competition from smaller and more agile single-item…

Computer Science and Game Theory · Computer Science 2024-06-21 Moshe Babaioff , Linda Cai , Brendan Lucier

We provide an elementary proof that revenue-maximizing mechanisms exist in multi-parameter settings whenever the distribution of valuations has finite expectation.

Computer Science and Game Theory · Computer Science 2026-01-07 Sergiu Hart , Noam Nisan

A seller chooses a reserve price in a second-price auction to maximize worst-case expected revenue when she knows only the mean of value distribution and an upper bound on either values themselves or variance. Values are private and iid.…

Theoretical Economics · Economics 2020-08-10 Alex Suzdaltsev

We consider the problem of designing auctions which maximize consumer surplus (i.e., the social welfare minus the payments charged to the buyers). In the consumer surplus maximization problem, a seller with a set of goods faces a set of…

Computer Science and Game Theory · Computer Science 2025-03-18 Tomer Ezra , Daniel Schoepflin , Ariel Shaulker

Energy forecasting has attracted enormous attention over the last few decades, with novel proposals related to the use of heterogeneous data sources, probabilistic forecasting, online learn-ing, etc. A key aspect that emerged is that…

Applications · Statistics 2022-04-05 Pierre Pinson , Liyang Han , Jalal Kazempour

A defining feature of digital goods is that replication and degradation are costless: once a high-quality good is produced, low-quality versions can be created and distributed at no additional cost. This paper studies quality-based…

Theoretical Economics · Economics 2026-03-10 Pietro Dall'Ara , Elia Sartori

We study the most famous example of a large financial market: the Arbitrage Pricing Model, where investors can trade in a one-period setting with countably many assets admitting a factor structure. We consider the problem of maximising…

Portfolio Management · Quantitative Finance 2020-10-06 Laurence Carassus , Miklos Rasonyi

The revenue maximization problem of service provider is considered and different pricing schemes to solve the above problem are implemented. The service provider can choose an apt pricing scheme subjected to limited resources, if he knows…

Networking and Internet Architecture · Computer Science 2014-03-13 Aditya Goyal , Akanksha Tyagi , Manisha Bhende , Swapnil Kawade

We study the problem of stock replenishment and transshipment in the retail industry. We develop a model that can accommodate different policies, including centralized redistribution (replenishment) and decentralized redistribution (lateral…

Optimization and Control · Mathematics 2024-10-25 Julio González-Díaz , Ángel M. González-Rueda , Irene Llana-García , Jorge Rodríguez-Veiga

Recently the influence maximization problem has received much attention for its applications on viral marketing and product promotions. However, such influence maximization problems have not taken into account the monetary effect on the…

Social and Information Networks · Computer Science 2015-05-26 Ya-Wen Teng , Chih-Hua Tai , Philip S. Yu , Ming-Syan Chen

We study revenue maximization by deterministic mechanisms for the simplest case for which Myerson's characterization does not hold: a single seller selling two items, with independently distributed values, to a single additive buyer. We…

Computer Science and Game Theory · Computer Science 2018-04-20 Moshe Babaioff , Noam Nisan , Aviad Rubinstein

How do cost shocks pass through to prices in markets with price dispersion? We decompose the problem into two layers. In the competition layer, consumers' consideration sets determine equilibrium distributions of normalized margins. In the…

Theoretical Economics · Economics 2026-04-23 Brian C. Albrecht , Mark Whitmeyer