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This paper studies the static economic optimization problem of a system with a single aggregator and multiple prosumers in a Real-Time Balancing Market (RTBM). The aggregator, as the agent responsible for portfolio balancing, needs to…

Optimization and Control · Mathematics 2023-04-28 Koorosh Shomalzadeh , Jacquelien M. A. Scherpen , M. Kanat Camlibel

We consider a novel formulation of the dynamic pricing and demand learning problem, where the evolution of demand in response to posted prices is governed by a stochastic variant of the popular Bass model with parameters $\alpha, \beta$…

Machine Learning · Computer Science 2021-03-10 Shipra Agrawal , Steven Yin , Assaf Zeevi

The society's insatiable appetites for personal data are driving the emergency of data markets, allowing data consumers to launch customized queries over the datasets collected by a data broker from data owners. In this paper, we study how…

Computational Engineering, Finance, and Science · Computer Science 2019-12-02 Chaoyue Niu , Zhenzhe Zheng , Fan Wu , Shaojie Tang , Guihai Chen

The network pricing problem (NPP) is a bilevel problem, where the leader optimizes its revenue by deciding on the prices of certain arcs in a graph, while expecting the followers (also known as the commodities) to choose a shortest path…

Optimization and Control · Mathematics 2024-01-31 Quang Minh Bui , Margarida Carvalho , José Neto

In this paper, we study the dynamic assortment optimization problem under a finite selling season of length $T$. At each time period, the seller offers an arriving customer an assortment of substitutable products under a cardinality…

Econometrics · Economics 2019-01-21 Xi Chen , Yining Wang , Yuan Zhou

The performance of multimodal mobility systems relies on the seamless integration of conventional mass transit services and the advent of Mobility-on-Demand (MoD) services. Prior work is limited to individually improving various transport…

Computational Engineering, Finance, and Science · Computer Science 2021-05-24 Qi Luo , Samitha Samaranayake , Siddhartha Banerjee

We consider assortment optimization over a continuous spectrum of products represented by the unit interval, where the seller's problem consists of determining the optimal subset of products to offer to potential customers. To describe the…

Machine Learning · Statistics 2021-04-15 Yannik Peeters , Arnoud V. den Boer , Michel Mandjes

A large number of real-world optimization problems can be formulated as Mixed Integer Linear Programs (MILP). MILP solvers expose numerous configuration parameters to control their internal algorithms. Solutions, and their associated costs…

Machine Learning · Computer Science 2023-07-04 Abdelrahman Hosny , Sherief Reda

We consider the problem of controlling a Markov decision process (MDP) with a large state space, so as to minimize average cost. Since it is intractable to compete with the optimal policy for large scale problems, we pursue the more modest…

Optimization and Control · Mathematics 2014-02-28 Yasin Abbasi-Yadkori , Peter L. Bartlett , Alan Malek

We consider dynamic pricing strategies in a streamed longitudinal data set-up where the objective is to maximize, over time, the cumulative profit across a large number of customer segments. We consider a dynamic model with the consumers'…

Machine Learning · Computer Science 2023-10-17 Rashmi Ranjan Bhuyan , Adel Javanmard , Sungchul Kim , Gourab Mukherjee , Ryan A. Rossi , Tong Yu , Handong Zhao

In this paper, we propose a realistic multiple dynamic pricing approach to demand response in the retail market. First, an adaptive clustering-based customer segmentation framework is proposed to categorize customers into different groups…

Systems and Control · Electrical Eng. & Systems 2021-06-11 Fanlin Meng , Qian Ma , Zixu Liu , Xiao-Jun Zeng

Approximate dynamic programming (ADP) faces challenges in dealing with constraints in control problems. Model predictive control (MPC) is, in comparison, well-known for its accommodation of constraints and stability guarantees, although its…

Systems and Control · Electrical Eng. & Systems 2023-04-10 Kanghui He , Shengling Shi , Ton van den Boom , Bart De Schutter

Projected Gradient Descent denotes a class of iterative methods for solving optimization programs. Its applicability to convex optimization programs has gained significant popularity for its intuitive implementation that involves only…

Optimization and Control · Mathematics 2016-10-24 Giampaolo Torrisi , Sergio Grammatico , Roy S. Smith , Manfred Morari

When sales of a product are affected by randomness in demand, retailers can use dynamic pricing strategies to maximise their profits. In this article the pricing problem is formulated as a stochastic optimal control problem, where the…

Optimization and Control · Mathematics 2017-10-17 Asbjørn N. Riseth , Jeff N. Dewynne , Chris L. Farmer

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 consider markets consisting of a set of indivisible items, and buyers that have {\em sharp} multi-unit demand. This means that each buyer $i$ wants a specific number $d_i$ of items; a bundle of size less than $d_i$ has no value, while a…

Computer Science and Game Theory · Computer Science 2015-03-13 Ning Chen , Xiaotie Deng , Paul. W. Goldberg , Jinshan Zhang

In financial engineering, prices of financial products are computed approximately many times each trading day with (slightly) different parameters in each calculation. In many financial models such prices can be approximated by means of…

Numerical Analysis · Mathematics 2024-10-24 Sebastian Becker , Arnulf Jentzen , Marvin S. Müller , Philippe von Wurstemberger

This paper contributes to the literature on parametric demand estimation by using deep learning to model consumer preferences. Traditional econometric methods often struggle with limited within-product price variation, a challenge addressed…

General Economics · Economics 2024-12-16 Kirill Safonov

In this paper, we study the offline sequential feature-based pricing and inventory control problem where the current demand depends on the past demand levels and any demand exceeding the available inventory is lost. Our goal is to leverage…

Machine Learning · Statistics 2026-03-12 Korel Gundem , Zhengling Qi

We study an online contextual dynamic pricing problem, where customers decide whether to purchase a product based on its features and price. We introduce a novel approach to modeling a customer's expected demand by incorporating…

Machine Learning · Computer Science 2023-12-27 Jianyu Xu , Yu-Xiang Wang
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