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We study the optimal timing of derivative purchases in incomplete markets. In our model, an investor attempts to maximize the spread between her model price and the offered market price through optimally timing her purchase. Both the…

Pricing of Securities · Quantitative Finance 2011-10-12 Tim Leung , Michael Ludkovski

We examine the effect of item arrangement on choices using a novel decision-making model based on the Markovian exploration of choice sets. This model is inspired by experimental evidence suggesting that the decision-making process involves…

Theoretical Economics · Economics 2024-10-30 Kremena Valkanova

This work studies the parameter identification problem for the Markov chain choice model of Blanchet, Gallego, and Goyal used in assortment planning. In this model, the product selected by a customer is determined by a Markov chain over the…

Statistics Theory · Mathematics 2017-07-27 Arushi Gupta , Daniel Hsu

This study addresses the difficulties associated with inventory management of products with stochastic demand. The objective is to find the optimal combination of order quantity and reorder point that maximizes profit while considering…

Computational Engineering, Finance, and Science · Computer Science 2023-10-05 Sarit Maitra , Vivek Mishra , Sukanya Kundu

We consider an assortment optimization problem where a customer chooses a single item from a sequence of sets shown to her, while limited inventories constrain the items offered to customers over time. In the special case where all of the…

Data Structures and Algorithms · Computer Science 2020-07-28 Elaheh Fata , Will Ma , David Simchi-Levi

We consider a revenue-maximizing seller with $n$ items facing a single buyer. We introduce the notion of symmetric menu complexity of a mechanism, which counts the number of distinct options the buyer may purchase, up to permutations of the…

Computer Science and Game Theory · Computer Science 2020-05-08 Pravesh Kothari , Divyarthi Mohan , Ariel Schvartzman , Sahil Singla , S. Matthew Weinberg

A recent line of research has established a novel desideratum for designing approximately-revenue-optimal multi-item mechanisms, namely the buy-many constraint. Under this constraint, prices for different allocations made by the mechanism…

Computer Science and Game Theory · Computer Science 2024-05-17 Shuchi Chawla , Rojin Rezvan , Yifeng Teng , Christos Tzamos

We consider the following two deterministic inventory optimization problems over a finite planning horizon $T$ with non-stationary demands. (a) Submodular Joint Replenishment Problem: This involves multiple item types and a single retailer…

Data Structures and Algorithms · Computer Science 2015-04-27 Viswanath Nagarajan , Cong Shi

We study the warehouse problem, arising in the area of inventory management and production planning. Here, a merchant wants to decide an optimal trading policy that computes quantities of a single commodity to purchase, store and sell…

Data Structures and Algorithms · Computer Science 2024-01-22 Ishan Bansal , Oktay Günlük

In modern e-commerce and service operations, firms must jointly manage inventory replenishment and real-time order fulfillment to maximize profit under demand uncertainty. While each component has been studied extensively in isolation,…

Optimization and Control · Mathematics 2026-03-05 Zi Ling , Jiashuo Jiang , Linwei Xin

In this paper, by leveraging abundant observational transaction data, we propose a novel data-driven and interpretable pricing approach for markdowns, consisting of counterfactual prediction and multi-period price optimization. Firstly, we…

Artificial Intelligence · Computer Science 2021-05-20 Junhao Hua , Ling Yan , Huan Xu , Cheng Yang

We study a class of robust assortment optimization problems that was proposed by Farias, Jagabathula, and Shah (2013). The goal in these problems is to find an assortment that maximizes a firm's worst-case expected revenue under all…

Optimization and Control · Mathematics 2024-02-28 Bradley Sturt

Finite element model updating is challenging because 1) the problem is oftentimes underdetermined while the measurements are limited and/or incomplete; 2) many combinations of parameters may yield responses that are similar with respect to…

Applications · Statistics 2021-07-28 Kai Zhou , Jiong Tang

Many information systems use tags and keywords to describe and annotate content. These allow for efficient organization and categorization of items, as well as facilitate relevant search queries. As such, the selected set of tags for an…

Social and Information Networks · Computer Science 2016-05-20 Nir Rosenfeld , Amir Globerson

In the paper, frameworks for electronic shopping of composite (modular) products are described: (a) multicriteria selection (product is considered as a whole system, it is a traditional approach), (b) combinatorial synthesis (composition)…

Software Engineering · Computer Science 2012-03-06 Mark Sh. Levin

We consider an assortment selection and pricing problem in which a seller has $N$ different items available for sale. In each round, the seller observes a $d$-dimensional contextual preference information vector for the user, and offers to…

Machine Learning · Computer Science 2025-03-18 Yigit Efe Erginbas , Thomas A. Courtade , Kannan Ramchandran

We consider the problem of optimally designing a system for repeated use under uncertainty. We develop a modeling framework that integrates design and operational phases, which are represented by a mixed-integer program and discounted-cost…

Optimization and Control · Mathematics 2024-03-25 Seth Brown , Saumya Sinha , Andrew J Schaefer

Submodular maximization has been the backbone of many important machine-learning problems, and has applications to viral marketing, diversification, sensor placement, and more. However, the study of maximizing submodular functions has…

Data Structures and Algorithms · Computer Science 2022-05-02 Guangyi Zhang , Nikolaj Tatti , Aristides Gionis

Discrete-choice models, such as Multinomial Logit, Probit, or Mixed-Logit, are widely used in Marketing, Economics, and Operations Research: given a set of alternatives, the customer is modeled as choosing one of the alternatives to…

Machine Learning · Computer Science 2023-10-16 Hanzhao Wang , Xiaocheng Li , Kalyan Talluri

Most recent research in network revenue management incorporates choice behavior that models the customers' buying logic. These models are consequently more complex to solve, but they return a more robust policy that usually generates better…

Optimization and Control · Mathematics 2019-11-05 Thibault Barbier , Miguel Anjos , Fabien Cirinei , Gilles Savard
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