article · KiltHub Repository · 2018

Pricing for customers with probabilistic valuations as a continuous knapsack problem

Benisch, Michael, Andrews, James, Sadeh, Norman

Cited by 0Open access

Abstract

Abstract: "In this paper, we examine the problem of choosing discriminatory prices for customers with probabilistic valuations and a seller with indistinguishable copies of a good. We show that under certain assumptions this problem can be reduced to the continuous knapsack problem (CKP). We present a new fast [epsilon]-optimal algorithm for solving CKP instances with asymmetric concave reward functions. We also show that our algorithm can be extended beyond the CKP setting to handle pricing problems with overlapping goods (e.g. goods with common components or common resource requirements), rather than indistinguishable goods. We provide a framework for learning distributions over customer valuations from historical data that are accurate and compatible with our CKP algorithm, and we validate our techniques with experiments on pricing instances derived from the Trading Agent Competition in Supply Chain Management (TAC SCM). Our results confirm that our algorithm converges to an [epsilon]-optimal solution more quickly in practice than an adaptation of a previously proposed greedy heuristic."

Cite this paper

APA 7

Benisch, M., Andrews, J., & Sadeh, N. (2018). Pricing for customers with probabilistic valuations as a continuous knapsack problem. KiltHub Repository. https://doi.org/10.1184/r1/6625370

MLA 9

Benisch, Michael, et al. “Pricing for customers with probabilistic valuations as a continuous knapsack problem.” KiltHub Repository, 2018, https://doi.org/10.1184/r1/6625370.

Chicago

Benisch, Michael, James Andrews, and Norman Sadeh. 2018. “Pricing for customers with probabilistic valuations as a continuous knapsack problem.” KiltHub Repository. https://doi.org/10.1184/r1/6625370.

Harvard

Benisch, M., Andrews, J. and Sadeh, N. (2018) ‘Pricing for customers with probabilistic valuations as a continuous knapsack problem’, KiltHub Repository. Available at: https://doi.org/10.1184/r1/6625370.

BibTeX

@article{benisch2018pricing,
  title = {{Pricing for customers with probabilistic valuations as a continuous knapsack problem}},
  author = {Benisch, Michael and Andrews, James and Sadeh, Norman},
  journal = {KiltHub Repository},
  year = {2018},
  doi = {10.1184/r1/6625370}
}

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