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The problem of determining the European-style option price in the incomplete market has been examined within the framework of stochastic optimization. An analytic method based on the discrete dynamic programming equation (Bellman equation)…

Statistical Mechanics · Physics 2016-08-31 Sergei Fedotov , Sergei Mikhailov

This paper considers a half-duplex scenario where an interferer behaves according to a parametric model but the values of the model parameters are unknown. We explore the necessary number of sensing steps to gather sufficient knowledge…

Information Theory · Computer Science 2024-10-11 Vincent Corlay , Jean-Christophe Sibel , Nicolas Gresset

In this paper incomplete-information models are developed for the pricing of securities in a stochastic interest rate setting. In particular we consider credit-risky assets that may include random recovery upon default. The market…

Pricing of Securities · Quantitative Finance 2010-06-04 Andrea Macrina , Priyanka A. Parbhoo

We study mechanism design in environments where agents have private preferences and private information about a common payoff-relevant state. In such settings with multi-dimensional types, standard mechanisms fail to implement efficient…

Theoretical Economics · Economics 2025-12-24 Dirk Bergemann , Marek Bojko , Paul Dütting , Renato Paes Leme , Haifeng Xu , Song Zuo

In the restructured electricity industry, electricity pooling markets are an oligopoly with strategic producers possessing private information (private production cost function). We focus on pooling markets where aggregate demand is…

Computer Science and Game Theory · Computer Science 2014-01-20 Mohammad Rasouli , Demosthenis Teneketzis

In the restructured electricity industry, electricity pooling markets are an oligopoly with strategic producers possessing private information (private production cost function). We focus on pooling markets where aggregate demand is…

Computer Science and Game Theory · Computer Science 2014-10-07 Mohammad Rasouli , Demosthenis Teneketzis

Power distribution networks, especially in North America, are often unbalanced but are designed to keep unbalance levels within the limits specified by IEEE, IEC, and NEMA standards. However, rapid integration of unbalanced devices, such as…

Systems and Control · Electrical Eng. & Systems 2025-01-14 Rahul K. Gupta , Daniel K. Molzahn

An informed seller designs a dynamic mechanism to sell an experience good. The seller has partial information about the product match, which affects the buyer's private consumption experience. We characterize equilibrium mechanisms of this…

Theoretical Economics · Economics 2025-06-24 Tan Gan , Nicholas Wu

We consider the problem of estimating missing values in trajectories of linear parameter-varying (LPV) systems. We solve this interpolation problem for the class of shifted-affine LPV systems. Conditions for the existence and uniqueness of…

Systems and Control · Electrical Eng. & Systems 2025-10-21 Chris Verhoek , Ivan Markovsky , Roland Tóth

This paper explores the critical domain of Revenue Management (RM) within Operations Research (OR), focusing on intricate pricing dynamics. Utilizing Mixed Integer Linear Programming (MILP) models, the study enhances revenue optimization by…

Optimization and Control · Mathematics 2024-04-08 Amirreza Talebi , Sayed Pedram Haeri Boroujeni , Abolfazl Razi

Data-driven machine learning (ML) has witnessed great successes across a variety of application domains. Since ML model training are crucially relied on a large amount of data, there is a growing demand for high quality data to be collected…

Databases · Computer Science 2020-03-31 Jinfei Liu

Many payment platforms hold large-scale marketing campaigns, which allocate incentives to encourage users to pay through their applications. To maximize the return on investment, incentive allocations are commonly solved in a two-stage…

Machine Learning · Computer Science 2022-01-03 Xuanying Chen , Zhining Liu , Li Yu , Sen Li , Lihong Gu , Xiaodong Zeng , Yize Tan , Jinjie Gu

The distribution of efficient individuals in the economy and the efforts that they will put in if they are hired, there are two important concerns for a technologically advanced firm. wants to open a new branch. The firm does not have…

Computer Science and Game Theory · Computer Science 2025-01-27 Sujata Goala , Mridu Prabal Goswami , Surajit Borkotokey

The cost of the power distribution infrastructures is driven by the peak power encountered in the system. Therefore, the distribution network operators consider billing consumers behind a common transformer in the function of their peak…

Systems and Control · Electrical Eng. & Systems 2022-04-01 Wenqi Cai , Hossein N. Esfahani , Arash B. Kordabad , Sébastien Gros

Data-driven pricing strategies are becoming increasingly common, where customers are offered a personalized price based on features that are predictive of their valuation of a product. It is desirable for this pricing policy to be simple…

Machine Learning · Statistics 2021-06-11 Max Biggs , Wei Sun , Markus Ettl

We investigate pooling problems in which multiple players vie with one another to maximize individual profit in a non-cooperative competitive market. This competitive setting is interesting and worthy of study because the majority of…

Optimization and Control · Mathematics 2022-11-24 Dimitri J. Papageorgiou , Stuart M. Harwood , Francisco Trespalacios

We consider the problem of distributed Kalman filtering for sensor networks in the case there is a limit in data transmission and there is model uncertainty. More precisely, we propose a distributed filtering strategy with event-triggered…

Optimization and Control · Mathematics 2022-05-18 Davide Ghion , Mattia Zorzi

Model-free Reinforcement Learning (RL) works well when experience can be collected cheaply and model-based RL is effective when system dynamics can be modeled accurately. However, both assumptions can be violated in real world problems such…

Machine Learning · Computer Science 2020-05-07 Mohak Bhardwaj , Ankur Handa , Dieter Fox , Byron Boots

A monopoly platform sells either a risky product (with unknown utility) or a safe product (with known utility) to agents who sequentially arrive and learn the utility of the risky product by the reporting of previous agents. It is costly…

Theoretical Economics · Economics 2023-12-12 Kaiwei Zhang , Xi Weng , Xienan Cheng

This paper deals with the market-bidding problem of a cluster of price-responsive consumers of electricity. We develop an inverse optimization scheme that, recast as a bilevel programming problem, uses price-consumption data to estimate the…

Optimization and Control · Mathematics 2015-11-04 Javier Saez-Gallego , Juan M. Morales , Marco Zugno , Henrik Madsen