Related papers: Revenue Optimization with Price-Sensitive and Inte…
We study mechanisms for selling a single item when buyers have private costs for participating in the mechanism. An agent's participation cost can also be interpreted as an outside option value that she must forego to participate. This…
We study the problem of multi-dimensional revenue maximization when selling $m$ items to a buyer that has additive valuations for them, drawn from a (possibly correlated) prior distribution. Unlike traditional Bayesian auction design, we…
In automated decision making processes in the online fashion industry, the 'predict-then-optimize' paradigm is frequently applied, particularly for markdown pricing strategies. This typically involves a mixed-integer optimization step,…
Pricing decisions of companies require an understanding of the causal effect of a price change on the demand. When real-life pricing experiments are infeasible, data-driven decision-making must be based on alternative data sources such as…
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…
Online platforms often incentivize consumers to improve user engagement and platform revenue. Since different consumers might respond differently to incentives, individual-level budget allocation is an essential task in marketing campaigns.…
This study explores the enhancement of customer satisfaction in the airline industry, a critical factor for retaining customers and building brand reputation, which are vital for revenue growth. Utilizing a combination of machine learning…
Randomized mechanisms, which map a set of bids to a probability distribution over outcomes rather than a single outcome, are an important but ill-understood area of computational mechanism design. We investigate the role of randomized…
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…
In this article, we present the development of a two-step optimization framework to deal with the design and selection of aircraft departure routes and the allocation of flights among these routes. The aim of the framework is to minimize…
Single-leg revenue management is a foundational problem of revenue management that has been particularly impactful in the airline and hotel industry: Given $n$ units of a resource, e.g. flight seats, and a stream of sequentially-arriving…
Tandem queueing systems are widely-used stochastic models that arise from many real-life service operations systems. Motivated by the desire to understand the trade-off between the performance and complexity of policies for…
Price discrimination, which refers to the strategy of setting different prices for different customer groups, has been widely used in online retailing. Although it helps boost the collected revenue for online retailers, it might create…
The International Air Transport Association (IATA) states that the revenue from interline tickets must be shared among the different airlines according to a weighted system. We analyze this problem following an axiomatic approach, and our…
Motivated by applications in online marketplaces such as ride-hailing platforms and payment channel networks, we study a single-server queue with state-dependent arrival control. The service operator dynamically chooses the arrival rate as…
We consider the problem of choosing prices of a set of products so as to maximize profit, taking into account self-elasticity and cross-elasticity, subject to constraints on the prices. We show that this problem can be formulated as…
Uplift models support decision-making in marketing campaign planning. Estimating the causal effect of a marketing treatment, an uplift model facilitates targeting communication to responsive customers and efficient allocation of marketing…
This paper is based on a crucial issue in the aviation world: how to optimize the trajectory and controls given to the aircraft in order to optimize flight time and fuel consumption. This study aims to provide elements of a response to this…
We consider the problem of designing an expected-revenue maximizing mechanism for allocating multiple non-perishable goods of $k$ varieties to flexible consumers over $T$ time steps. In our model, a random number of goods of each variety…
Product ranking is the core problem for revenue-maximizing online retailers. To design proper product ranking algorithms, various consumer choice models are proposed to characterize the consumers' behaviors when they are provided with a…