Related papers: Pricing Problems in Adoption of New Technologies
Problem definition: Traditional monopoly pricing assumes sellers have full information about consumer valuations. We consider monopoly pricing under limited information, where a seller only knows the mean, variance and support of the…
This paper focuses on multi-stage coordination for a population of thermostatically controlled loads (TCL). Each load maximizes the individual utility in response to an energy price, while the coordinator determines the price to maximize…
We address a new prize-collecting problem of routing commodities in a given network with hub and non-hub nodes, in which the service of the non-hub nodes will be outsourced to third-party carriers. The problem is modeled as a Stackelberg…
We consider pricing and selection with fading channels in a Stackelberg game framework. A channel server decides the channel prices and a client chooses which channel to use based on the remote estimation quality. We prove the existence of…
A seller offers a buyer a schedule of transfers and associated product qualities. After observing this schedule, the buyer chooses a flexible costly signal about his type. We show it is without loss to focus on a class of mechanisms that…
We study a version of the classical Cayley-Moser optimal stopping problem, in which a seller must sell an asset by a given deadline, with the offers, which are independent random variables with a known distribution, arriving at random…
This paper studies the optimal investment problem with random endowment in an inventory-based price impact model with competitive market makers. Our goal is to analyze how price impact affects optimal policies, as well as both pricing rules…
A typical viral marketing model identifies influential users in a social network to maximize a single product adoption assuming unlimited user attention, campaign budgets, and time. In reality, multiple products need campaigns, users have…
We investigate stochastic differential games of optimal trading comprising a finite population. There are market frictions in the present framework, which take the form of stochastic permanent and temporary price impacts. Moreover,…
Consider the problem of a central bank that wants to manage the exchange rate between its domestic currency and a foreign one. The central bank can purchase and sell the foreign currency, and each intervention on the exchange market leads…
The stochastic knapsack has been used as a model in wide ranging applications from dynamic resource allocation to admission control in telecommunication. In recent years, a variation of the model has become a basic tool in studying problems…
We consider a stochastic game between a slow institutional investor and a high-frequency trader who are trading a risky asset and their aggregated order-flow impacts the asset price. We model this system by means of two coupled stochastic…
We study prior-independent pricing for selling a single item to a single buyer when the seller observes only a single sample from the valuation distribution, while the buyer knows the distribution. Classical robust pricing approaches either…
Does a new product spread faster among heterogeneous or homogeneous consumers? We analyze this question using the stochastic discrete Bass model, in which consumers may differ in their individual external influence rates $\{p_j \}$ and in…
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…
A buyer and a seller bargain over the price of an object. Both players can build reputations for being obstinate by offering the same price over time. Before players bargain, the seller decides whether to adopt a new technology that can…
Risk measures are commonly used to capture the risk preferences of decision-makers (DMs). The decisions of DMs can be nudged or manipulated when their risk preferences are influenced by factors such as the availability of information about…
This paper proposes an energy management technique for a consumer-to-grid system in smart grid. The benefit to consumers is made the primary concern to encourage consumers to participate voluntarily in energy trading with the central power…
We present a novel methodology for analyzing the optimal promotion in the Bass model for the spreading of new products on networks. For general networks with $M$ nodes, the optimal promotion is the solution of $2^M-1$ nonlinearly-coupled…
Motivated by applications to word-of-mouth advertising, we consider a game-theoretic scenario in which competing advertisers want to target initial adopters in a social network. Each advertiser wishes to maximize the resulting cascade of…