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People often face trade-offs between costs and benefits occurring at various points in time. The predominant discounting approach is to use the exponential form. Central to this approach is the discount rate, a unique parameter that…

Theoretical Economics · Economics 2024-08-13 Bach Dong-Xuan , Philippe Bich

This paper investigates the impact of pre-existing offline data on online learning, in the context of dynamic pricing. We study a single-product dynamic pricing problem over a selling horizon of $T$ periods. The demand in each period is…

Machine Learning · Computer Science 2021-11-18 Jinzhi Bu , David Simchi-Levi , Yunzong Xu

User-randomized A/B testing has emerged as the gold standard for online experimentation. However, when this kind of approach is not feasible due to legal, ethical or practical considerations, experimenters have to consider alternatives like…

Methodology · Statistics 2025-06-17 Paul Missault , Lorenzo Masoero , Christian Delbé , Thomas Richardson , Guido Imbens

An important use of machine learning is to learn what people value. What posts or photos should a user be shown? Which jobs or activities would a person find rewarding? In each case, observations of people's past choices can inform our…

Artificial Intelligence · Computer Science 2015-12-21 Owain Evans , Andreas Stuhlmueller , Noah D. Goodman

Good economic mechanisms depend on the preferences of participants in the mechanism. For example, the revenue-optimal auction for selling an item is parameterized by a reserve price, and the appropriate reserve price depends on how much the…

Computer Science and Game Theory · Computer Science 2014-06-10 Shuchi Chawla , Jason Hartline , Denis Nekipelov

In societal-scale infrastructures, such as electric grids or transportation networks, pricing mechanisms are often used as a way to shape users' demand in order to lower operating costs and improve reliability. Existing approaches to…

Systems and Control · Electrical Eng. & Systems 2023-08-01 Spencer Hutchinson , Berkay Turan , Mahnoosh Alizadeh

The growing demand for data and AI-generated digital goods, such as personalized written content and artwork, necessitates effective pricing and feedback mechanisms that account for uncertain utility and costly production. Motivated by…

Computer Science and Game Theory · Computer Science 2023-06-06 Zachary Robertson , Oluwasanmi Koyejo

We consider a dynamic pricing problem under unknown demand models. In this problem a seller offers prices to a stream of customers and observes either success or failure in each sale attempt. The underlying demand model is unknown to the…

Machine Learning · Computer Science 2012-10-30 Pouya Tehrani , Yixuan Zhai , Qing Zhao

We study the revenue comparison problem of auctions when the seller has a maxmin expected utility preference. The seller holds a set of priors around some reference belief, interpreted as an approximating model of the true probability law…

Theoretical Economics · Economics 2022-11-24 Sosung Baik , Sung-Ha Hwang

Accurate day-ahead electricity price forecasting is essential for residential welfare, yet current methods often fall short in forecast accuracy. We observe that commonly used time series models struggle to utilize the prior correlation…

Machine Learning · Computer Science 2024-08-20 Linian Wang , Jianghong Liu , Huibin Zhang , Leye Wang

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

We analyze sources of error in prediction market forecasts in order to bound the difference between a security's price and the ground truth it estimates. We consider cost-function-based prediction markets in which an automated market maker…

Computer Science and Game Theory · Computer Science 2018-02-22 Miroslav Dudík , Sébastien Lahaie , Ryan Rogers , Jennifer Wortman Vaughan

Much like small ripples in a stream, which get lost in the larger waves, small changes in retail prices often fly under the radar of public perceptions, while large price changes appear as marketing moves associated with demand and…

General Economics · Economics 2025-12-03 Xiao Ling , Sourav Ray , Daniel Levy

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

Residential Demand Response has emerged as a viable tool to alleviate supply and demand imbalances of electricity, particularly during times when the electric grid is strained due a shortage of supply. Demand Response providers bid…

Computer Science and Game Theory · Computer Science 2017-09-05 Datong P. Zhou , Maximilian Balandat , Munther A. Dahleh , Claire J. Tomlin

Trial-offer markets, where customers can sample a product before deciding whether to buy it, are ubiquitous in the online experience. Their static and dynamic properties are often studied by assuming that consumers follow a multinomial…

Computer Science and Game Theory · Computer Science 2016-10-07 Pascal Van Hentenryck , Alvaro Flores , Gerardo Berbeglia

Sequential posted pricing auctions are popular because of their simplicity in practice and their tractability in theory. A usual assumption in their study is that the Bayesian prior distributions of the buyers are known to the seller, while…

Machine Learning · Computer Science 2024-06-14 Sahil Singla , Yifan Wang

Inverse classification, the process of making meaningful perturbations to a test point such that it is more likely to have a desired classification, has previously been addressed using data from a single static point in time. Such an…

Machine Learning · Computer Science 2016-11-15 Michael T. Lash , W. Nick Street

Prediction markets rely on liquidity to convert trades into informative prices, yet existing mechanisms fix liquidity ex ante. This restriction enforces a static trade-off between price responsiveness and worst-case loss despite inherently…

Computer Science and Game Theory · Computer Science 2026-05-12 Enrique Nueve , Bao Nguyen , Rafael Frongillo , Bo Waggoner

With the growing needs of online A/B testing to support the innovation in industry, the opportunity cost of running an experiment becomes non-negligible. Therefore, there is an increasing demand for an efficient continuous monitoring…

Machine Learning · Computer Science 2023-04-04 Runzhe Wan , Yu Liu , James McQueen , Doug Hains , Rui Song
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