scholarly journals Online Learning and Optimization for Revenue Management Problems with Add-on Discounts

2022 ◽  
Author(s):  
David Simchi-Levi ◽  
Rui Sun ◽  
Huanan Zhang
Keyword(s):  
Revenue Management ◽  
Video Game ◽  
Optimization Problem ◽  
Learning Algorithm ◽  
Optimal Algorithm ◽  
Management Problem ◽  
Demand Model ◽  
Logarithmic Term ◽  
Demand Functions ◽  
Comparison Results

We study in this paper a revenue-management problem with add-on discounts. The problem is motivated by the practice in the video game industry by which a retailer offers discounts on selected supportive products (e.g., video games) to customers who have also purchased the core products (e.g., video game consoles). We formulate this problem as an optimization problem to determine the prices of different products and the selection of products for add-on discounts. In the base model, we focus on an independent demand structure. To overcome the computational challenge of this optimization problem, we propose an efficient fully polynomial-time approximation scheme (FPTAS) algorithm that solves the problem approximately to any desired accuracy. Moreover, we consider the problem in the setting in which the retailer has no prior knowledge of the demand functions of different products. To solve this joint learning and optimization problem, we propose an upper confidence bound–based learning algorithm that uses the FPTAS optimization algorithm as a subroutine. We show that our learning algorithm can converge to the optimal algorithm that has access to the true demand functions, and the convergence rate is tight up to a certain logarithmic term. We further show that these results for the independent demand model can be extended to multinomial logit choice models. In addition, we conduct numerical experiments with the real-world transaction data we collect from a popular video gaming brand’s online store on Tmall.com. The experiment results illustrate our learning algorithm’s robust performance and fast convergence in various scenarios. We also compare our algorithm with the optimal policy that does not use any add-on discount. The comparison results show the advantages of using the add-on discount strategy in practice. This paper was accepted by J. George Shanthikumar, big data analytics.

The smallest extraction problem

2021 ◽  
Vol 14 (11) ◽  
pp. 2445-2458
Author(s):  
Valerio Cetorelli ◽  
Paolo Atzeni ◽  
Valter Crescenzi ◽  
Franco Milicchio
Keyword(s):  
Unsupervised Learning ◽  
Optimization Problem ◽  
Learning Algorithm ◽  
State Of The Art ◽  
Data Extraction ◽  
Source Code ◽  
Web Data ◽  
Web Data Extraction ◽  
New Family ◽  
Context Free

We introduce landmark grammars , a new family of context-free grammars aimed at describing the HTML source code of pages published by large and templated websites and therefore at effectively tackling Web data extraction problems. Indeed, they address the inherent ambiguity of HTML, one of the main challenges of Web data extraction, which, despite over twenty years of research, has been largely neglected by the approaches presented in literature. We then formalize the Smallest Extraction Problem (SEP), an optimization problem for finding the grammar of a family that best describes a set of pages and contextually extract their data. Finally, we present an unsupervised learning algorithm to induce a landmark grammar from a set of pages sharing a common HTML template, and we present an automatic Web data extraction system. The experiments on consolidated benchmarks show that the approach can substantially contribute to improve the state-of-the-art.

Convergence analysis of online learning algorithm with two-stage step size

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Weilin Nie ◽  
Cheng Wang
Keyword(s):  
Online Learning ◽  
Optimization Problems ◽  
Learning Algorithm ◽  
Computational Cost ◽  
Reproducing Kernels ◽  
Step Size ◽  
Two Stage ◽  
Logarithmic Term ◽  
Convergence Performance ◽  
Online Learning Algorithm

Abstract Online learning is a classical algorithm for optimization problems. Due to its low computational cost, it has been widely used in many aspects of machine learning and statistical learning. Its convergence performance depends heavily on the step size. In this paper, a two-stage step size is proposed for the unregularized online learning algorithm, based on reproducing Kernels. Theoretically, we prove that, such an algorithm can achieve a nearly min–max convergence rate, up to some logarithmic term, without any capacity condition.

Adaptive Grouping Brain Storm Optimization for Multimodal Optimization Problems

2021 ◽  
Vol 12 (4) ◽  
pp. 81-100
Author(s):  
Yao Peng ◽  
Zepeng Shen ◽  
Shiqi Wang
Keyword(s):  
Optimization Problem ◽  
Optimization Problems ◽  
Optimal Algorithm ◽  
Peak Detection ◽  
Multimodal Optimization ◽  
Optimal Solutions ◽  
Grouping Strategy ◽  
Different Dimensions ◽  
Global Optimal ◽  
Localization Ability

Multimodal optimization problem exists in multiple global and many local optimal solutions. The difficulty of solving these problems is finding as many local optimal peaks as possible on the premise of ensuring global optimal precision. This article presents adaptive grouping brainstorm optimization (AGBSO) for solving these problems. In this article, adaptive grouping strategy is proposed for achieving adaptive grouping without providing any prior knowledge by users. For enhancing the diversity and accuracy of the optimal algorithm, elite reservation strategy is proposed to put central particles into an elite pool, and peak detection strategy is proposed to delete particles far from optimal peaks in the elite pool. Finally, this article uses testing functions with different dimensions to compare the convergence, accuracy, and diversity of AGBSO with BSO. Experiments verify that AGBSO has great localization ability for local optimal solutions while ensuring the accuracy of the global optimal solutions.

Online Assortment Optimization with Reusable Resources

2021 ◽  
Author(s):  
Xiao-Yue Gong ◽  
Vineet Goyal ◽  
Garud N. Iyengar ◽  
David Simchi-Levi ◽  
Rajan Udwani ◽  
...  
Keyword(s):  
Optimization Problem ◽  
Online Algorithm ◽  
Random Number ◽  
Optimal Algorithm ◽  
User Preference ◽  
Substitutable Products ◽  
Assortment Optimization ◽  
Myopic Policy ◽  
Expected Revenue ◽  
And Performance

We consider an online assortment optimization problem where we have n substitutable products with fixed reusable capacities [Formula: see text]. In each period t, a user with some preferences (potentially adversarially chosen) who offers a subset of products, St, from the set of available products arrives at the seller’s platform. The user selects product [Formula: see text] with probability given by the preference model and uses it for a random number of periods, [Formula: see text], that is distributed i.i.d. according to some distribution that depends only on j generating a revenue [Formula: see text] for the seller. The goal of the seller is to find a policy that maximizes the expected cumulative revenue over a finite horizon T. Our main contribution is to show that a simple myopic policy (where we offer the myopically optimal assortment from the available products to each user) provides a good approximation for the problem. In particular, we show that the myopic policy is 1/2-competitive, that is, the expected cumulative revenue of the myopic policy is at least half the expected revenue of the optimal policy with full information about the sequence of user preference models and the distribution of random usage times of all the products. In contrast, the myopic policy does not require any information about future arrivals or the distribution of random usage times. The analysis is based on a coupling argument that allows us to bound the expected revenue of the optimal algorithm in terms of the expected revenue of the myopic policy. We also consider the setting where usage time distributions can depend on the type of each user and show that in this more general case there is no online algorithm with a nontrivial competitive ratio guarantee. Finally, we perform numerical experiments to compare the robustness and performance of myopic policy with other natural policies. This paper was accepted by Gabriel Weintraub, revenue management and analytics.

Using geometric constraints to improve performance of image classifiers for automatic segmentation of traffic signs

GEOMATICA ◽  
2021 ◽  
pp. 1-23
Author(s):  
Roholah Yazdan ◽  
Masood Varshosaz ◽  
Saied Pirasteh ◽  
Fabio Remondino
Keyword(s):  
Deep Learning ◽  
Learning Algorithm ◽  
Automatic Segmentation ◽  
Geometric Constraints ◽  
Support Vector ◽  
Svm Classifier ◽  
Data Set ◽  
Traffic Signs ◽  
Deep Learning Algorithm ◽  
Comparison Results

Automatic detection and recognition of traffic signs from images is an important topic in many applications. At first, we segmented the images using a classification algorithm to delineate the areas where the signs are more likely to be found. In this regard, shadows, objects having similar colours, and extreme illumination changes can significantly affect the segmentation results. We propose a new shape-based algorithm to improve the accuracy of the segmentation. The algorithm works by incorporating the sign geometry to filter out the wrong pixels from the classification results. We performed several tests to compare the performance of our algorithm against those obtained by popular techniques such as Support Vector Machine (SVM), K-Means, and K-Nearest Neighbours. In these tests, to overcome the unwanted illumination effects, the images are transformed into colour spaces Hue, Saturation, and Intensity, YUV, normalized red green blue, and Gaussian. Among the traditional techniques used in this study, the best results were obtained with SVM applied to the images transformed into the Gaussian colour space. The comparison results also suggested that by adding the geometric constraints proposed in this study, the quality of sign image segmentation is improved by 10%–25%. We also comparted the SVM classifier enhanced by incorporating the geometry of signs with a U-Shaped deep learning algorithm. Results suggested the performance of both techniques is very close. Perhaps the deep learning results could be improved if a more comprehensive data set is provided.

Driving Home the Message

2014 ◽  
Vol 6 (1) ◽  
pp. 50-63 ◽  
Author(s):  
Edward Downs
Keyword(s):  
Video Game ◽  
Driving Simulator ◽  
Cognitive Architecture ◽  
Distracted Driving ◽  
Driving Safety ◽  
Control Group ◽  
Comparison Results ◽  
Post Test ◽  
Game Console ◽  
Original Procedure

A pre-test, post-test experiment was conducted to determine if using a popular racing game on a PlayStation® 3 video game console could change a player's intent to drive distracted. Results indicated that those who were driving distracted (texting or talking) in a video game driving simulator had significantly more crashes, speed violations, and fog-line crossings than those in a non-distracted driving control group. These findings are consistent with predictions from the ACT-R cognitive architecture and threaded cognition theory. A follow-up study manipulated the original protocol by establishing a non-distracted baseline for participants' driving abilities as a comparison. Results demonstrated that this manipulation resulted in a significantly stronger change in attitude against driving distracted than in the original procedure. The implications help to inform driving safety programs on proper protocol for the use of game consoles to change attitudes toward distracted driving.

scholarly journals Location histogram privacy by Sensitive Location Hiding and Target Histogram Avoidance/Resemblance

2019 ◽  
Vol 62 (7) ◽  
pp. 2613-2651
Author(s):  
Grigorios Loukides ◽  
George Theodorakopoulos
Keyword(s):  
Price Discrimination ◽  
Optimization Problem ◽  
Optimal Algorithm ◽  
Search Space ◽  
Greedy Heuristic ◽  
Optimal Solutions ◽  
Area Of Interest ◽  
Minority Member ◽  
Specific Search

AbstractA location histogram is comprised of the number of times a user has visited locations as they move in an area of interest, and it is often obtained from the user in the context of applications such as recommendation and advertising. However, a location histogram that leaves a user’s computer or device may threaten privacy when it contains visits to locations that the user does not want to disclose (sensitive locations), or when it can be used to profile the user in a way that leads to price discrimination and unsolicited advertising (e.g., as “wealthy” or “minority member”). Our work introduces two privacy notions to protect a location histogram from these threats: Sensitive Location Hiding, which aims at concealing all visits to sensitive locations, and Target Avoidance/Resemblance, which aims at concealing the similarity/dissimilarity of the user’s histogram to a target histogram that corresponds to an undesired/desired profile. We formulate an optimization problem around each notion: Sensitive Location Hiding ($${ SLH}$$SLH), which seeks to construct a histogram that is as similar as possible to the user’s histogram but associates all visits with nonsensitive locations, and Target Avoidance/Resemblance ($${ TA}$$TA/$${ TR}$$TR), which seeks to construct a histogram that is as dissimilar/similar as possible to a given target histogram but remains useful for getting a good response from the application that analyzes the histogram. We develop an optimal algorithm for each notion, which operates on a notion-specific search space graph and finds a shortest or longest path in the graph that corresponds to a solution histogram. In addition, we develop a greedy heuristic for the $${ TA}$$TA/$${ TR}$$TR problem, which operates directly on a user’s histogram. Our experiments demonstrate that all algorithms are effective at preserving the distribution of locations in a histogram and the quality of location recommendation. They also demonstrate that the heuristic produces near-optimal solutions while being orders of magnitude faster than the optimal algorithm for $${ TA}$$TA/$${ TR}$$TR.

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