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We study robust mechanisms to sell a common-value good. We assume that the mechanism designer knows the prior distribution of the buyers' common value but is unsure of the buyers' information structure about the common value. We use linear…

Computer Science and Game Theory · Computer Science 2016-11-22 Songzi Du

Assortment optimization is a fundamental challenge in modern retail and recommendation systems, where the goal is to select a subset of products that maximizes expected revenue under complex customer choice behaviors. While recent advances…

Machine Learning · Statistics 2026-03-11 Miao Lu , Yuxuan Han , Han Zhong , Zhengyuan Zhou , Jose Blanchet

We provide a characterization of revenue-optimal dynamic mechanisms in settings where a monopolist sells k items over k periods to a buyer who realizes his value for item i in the beginning of period i. We require that the mechanism…

Computer Science and Game Theory · Computer Science 2016-07-06 Itai Ashlagi , Constantinos Daskalakis , Nima Haghpanah

We present a general method for obtaining strong bounds for discrete optimization problems that is based on a concept of branching duality. It can be applied when no useful integer programming model is available, and we illustrate this with…

Data Structures and Algorithms · Computer Science 2019-08-22 J. G. Benade , J. N. Hooker

We study the envy free pricing problem faced by a seller who wishes to maximize revenue by setting prices for bundles of items. If there is an unlimited supply of items and agents are single minded then we show that finding the revenue…

Computer Science and Game Theory · Computer Science 2016-09-08 Amos Fiat , Amiram Wingarten

The aim of structured optimization is to assemble a solution, using a given set of (possibly uncountably infinite) atoms, to fit a model to data. A two-stage algorithm based on gauge duality and bundle method is proposed. The first stage…

Optimization and Control · Mathematics 2019-11-05 Zhenan Fan , Yifan Sun , Michael P. Friedlander

An optimization algorithm for nonsmooth nonconvex constrained optimization problems with upper-C2 objective functions is proposed and analyzed. Upper-C2 is a weakly concave property that exists in difference of convex (DC) functions and…

Optimization and Control · Mathematics 2022-04-21 Jingyi Wang , Cosmin G. Petra

Extended warranties (EWs) constitute a significant source of revenue for capital-intensive products. Such products comprise multiple subsystems, enabling flexible EW design. For example, providers can bundle tailored sets of subsystems…

Optimization and Control · Mathematics 2025-11-10 Yajing Chen , Yanrong Li , Xiao-Lin Wang , Zhi-Sheng Ye

We study a seller who sells a single good to multiple bidders with uncertainty over the joint distribution of bidders' valuations, as well as bidders' higher-order beliefs about their opponents. The seller only knows the (possibly…

Theoretical Economics · Economics 2022-02-16 Ethan Che

We consider the problem of optimal consumption of multiple goods in incomplete semimartingale markets. We formulate the dual problem and identify conditions that allow for existence and uniqueness of the solution and give a characterization…

Mathematical Finance · Quantitative Finance 2018-01-09 Oleksii Mostovyi

A common problem in the optimization of structures is the handling of uncertainties in the parameters. If the parameters appear in the constraints, the uncertainties can lead to an infinite number of constraints. Usually the constraints…

Optimization and Control · Mathematics 2012-05-01 Daniel P. Mohr , Ina Stein , Thomas Matzies , Christina A. Knapek

Many-to-one maps are ubiquitous in machine learning, from the image recognition model that assigns a multitude of distinct images to the concept of "cat" to the time series forecasting model which assigns a range of distinct time-series to…

Machine Learning · Computer Science 2022-02-28 Nico Courts , Henry Kvinge

We show that the traveling salesman problem (TSP) and its many variants may be modeled as functional optimization problems over a graph. In this formulation, all vertices and arcs of the graph are functionals; i.e., a mapping from a space…

Optimization and Control · Mathematics 2020-05-08 I. M. Ross , R. J. Proulx , M. Karpenko

Suppliers of differentiated goods make simultaneous pricing decisions, which are strategically linked. Because of market power, the equilibrium is inefficient. We study how a policymaker should target a budget-balanced tax-and-subsidy…

Theoretical Economics · Economics 2022-06-29 Andrea Galeotti , Benjamin Golub , Sanjeev Goyal , Eduard Talamàs , Omer Tamuz

Data regulations increasingly enable consumers to switch among market segments, making segmentation an endogenous outcome of strategic interaction. We study a model in which consumers choose segments before a monopolist sets…

Theoretical Economics · Economics 2026-05-14 Zhonghong Kuang , Sanxi Li , Yi Liu , Yang Yu

We consider a package assignment problem with multiple units of indivisible items. The seller can specify preferences over partitions of their supply between buyers as packaging costs. We propose incremental costs together with a graph that…

Theoretical Economics · Economics 2025-07-08 Simon Finster

This paper addresses the problem of sequential submodular maximization: selecting and ranking items in a sequence to optimize some composite submodular function. In contrast to most of the previous works, which assume access to the utility…

Machine Learning · Computer Science 2024-09-10 Jing Yuan , Shaojie Tang

Higher-dimensional orthogonal packing problems have a wide range of practical applications, including packing, cutting, and scheduling. Previous efforts for exact algorithms have been unable to avoid structural problems that appear for…

Data Structures and Algorithms · Computer Science 2007-05-23 Sandor P. Fekete , Joerg Schepers

We consider the problem of designing a revenue-optimal mechanism in the two-item, single-buyer, unit-demand setting when the buyer's valuations, $(z_1, z_2)$, are uniformly distributed in an arbitrary rectangle $[c,c+b_1]\times[c,c+b_2]$ in…

Computer Science and Game Theory · Computer Science 2019-03-06 D. Thirumulanathan , Rajesh Sundaresan , Y Narahari

A fundamental assumption in classical mechanism design is that buyers are perfect optimizers. However, in practice, buyers may be limited by their computational capabilities or a lack of information, and may not be able to perfectly…

Theoretical Economics · Economics 2022-03-28 Santiago Balseiro , Omar Besbes , Francisco Castro