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This paper studies dynamic monopoly pricing for a broad class of settings that allow for multiple durable, multiple rental, or a mix of varieties. We show that the driving force behind pricing dynamics is the existence of trading-up…

General Economics · Economics 2025-07-09 Stefan Buehler , Nicolas Eschenbaum , Severin Lenhard

This paper studies how platform design shapes strategic behavior in decentralized electricity trading. We develop a finite-horizon dynamic game in which photovoltaic- and battery-equipped players ("prosumers") trade on a platform that maps…

General Economics · Economics 2026-03-23 Nicolas Eschenbaum , Nicolas Greber

We study the problem of learning shared structure \emph{across} a sequence of dynamic pricing experiments for related products. We consider a practical formulation where the unknown demand parameters for each product come from an unknown…

Machine Learning · Computer Science 2021-01-07 Hamsa Bastani , David Simchi-Levi , Ruihao Zhu

We introduce the use of reinforcement learning for indirect mechanisms, working with the existing class of sequential price mechanisms, which generalizes both serial dictatorship and posted price mechanisms and essentially characterizes all…

Computer Science and Game Theory · Computer Science 2021-05-07 Gianluca Brero , Alon Eden , Matthias Gerstgrasser , David C. Parkes , Duncan Rheingans-Yoo

In many shopping scenarios, e.g., in online shopping, customers have a large menu of options to choose from. However, most of the buyers do not browse all the options and make decision after considering only a small part of the menu. To…

Computer Science and Game Theory · Computer Science 2018-02-15 Nick Gravin , Zhihao Gavin Tang

We study the offline data-driven newsvendor problem with censored demand data. In contrast to prior works where demand is fully observed, we consider the setting where demand is censored at the inventory level and only sales are observed;…

Machine Learning · Computer Science 2026-02-20 Rachitesh Kumar , Omar Mouchtaki

A monopolist wants to sell one item per period to a consumer with evolving and persistent private information. The seller sets a price each period depending on the history so far, but cannot commit to future prices. We show that, regardless…

Theoretical Economics · Economics 2021-12-14 Martino Banchio , Frank Yang

Agents attempt to maximize expected profits earned by selling multiple units of a perishable product where their revenue streams are affected by the prices they quote as well as the distribution of other prices quoted in the market by other…

Trading and Market Microstructure · Quantitative Finance 2025-04-16 Ryan Donnelly , Zi Li

Personalized pricing, which involves tailoring prices based on individual characteristics, is commonly used by firms to implement a consumer-specific pricing policy. In this process, buyers can also strategically manipulate their feature…

Machine Learning · Statistics 2024-06-27 Pangpang Liu , Zhuoran Yang , Zhaoran Wang , Will Wei Sun

Given the combined evidences of bounded rationality, limited information and short-term optimization, over-the-counter (OTC) fresh product markets provide a perfect instance where to develop a behavioural approach to the analysis of…

Theoretical Economics · Economics 2025-11-17 Ali Ellouze , Bastien Fernandez

This paper studies convergence properties of optimal values and actions for discounted and average-cost Markov Decision Processes (MDPs) with weakly continuous transition probabilities and applies these properties to the stochastic…

Optimization and Control · Mathematics 2017-03-21 Eugene A. Feinberg , Mark E. Lewis

We consider a seller faced with buyers which have the ability to delay their decision, which we call patience. Each buyer's type is composed of value and patience, and it is sampled i.i.d. from a distribution. The seller, using posted…

Computer Science and Game Theory · Computer Science 2022-06-28 Eitan-Hai Mashiah , Idan Attias , Yishay Mansour

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

We consider the Item Pricing problem for revenue maximization in the limited supply setting, where a single seller with $n$ items caters to $m$ buyers with unknown subadditive valuation functions who arrive in a sequence. The seller sets…

Computer Science and Game Theory · Computer Science 2009-05-21 Tanmoy Chakraborty , Zhiyi Huang , Sanjeev Khanna

We consider a continuous-time model for inventory management with Markov modulated non-stationary demands. We introduce active learning by assuming that the state of the world is unobserved and must be inferred by the manager. We also…

Optimization and Control · Mathematics 2012-06-28 Erhan Bayraktar , Mike Ludkovski

Firms increasingly rely on dynamic pricing to respond to evolving customer demand, yet in many applications they observe only the revenue generated by a single posted price in each period. At the same time, market conditions may shift…

Machine Learning · Computer Science 2026-05-21 Xiangyu Yang , Feng Xu , Jian-Qiang Hu , Jiaqiao Hu

The advent of financial technology has witnessed a surge in the utilization of deep learning models to anticipate consumer conduct, a trend that has demonstrated considerable potential in enhancing lending strategies and bolstering market…

Machine Learning · Computer Science 2025-11-25 Shenghan Zhao , Yuzhen Lin , Ximeng Yang , Qiaochu Lu , Haozhong Xue , Gaozhe Jiang

In this work, we investigate the market-making problem on a trading session in which a continuous phase on a limit order book is followed by a closing auction. Whereas standard optimal market-making models typically rely on terminal…

Trading and Market Microstructure · Quantitative Finance 2026-01-27 Julius Graf , Thibaut Mastrolia

We study the power and limits of optimal dynamic pricing in combinatorial markets; i.e., dynamic pricing that leads to optimal social welfare. Previous work by Cohen-Addad et al. [EC'16] demonstrated the existence of optimal dynamic prices…

Computer Science and Game Theory · Computer Science 2020-10-16 Ben Berger , Alon Eden , Michal Feldman

A retailer is purchasing goods in bundles from suppliers and then selling these goods in bundles to customers; her goal is to maximize profit, which is the revenue obtained from selling goods minus the cost of purchasing those goods. In…

Data Structures and Algorithms · Computer Science 2025-08-01 Yossi Azar , Niv Buchbinder , Roie Levin , Or Vardi
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