Sequential Item Pricing for Unlimited Supply

  • Maria-Florina Balcan
  • Florin Constantin
Conference paper

DOI: 10.1007/978-3-642-17572-5_5

Part of the Lecture Notes in Computer Science book series (LNCS, volume 6484)
Cite this paper as:
Balcan MF., Constantin F. (2010) Sequential Item Pricing for Unlimited Supply. In: Saberi A. (eds) Internet and Network Economics. WINE 2010. Lecture Notes in Computer Science, vol 6484. Springer, Berlin, Heidelberg

Abstract

We study prior-free revenue maximization for a seller with unlimited supply of n item types facing m myopic buyers present for \(k\!<\!\log n\) days. We show that a certain randomized schedule of posted prices has an approximation factor of \(O(\frac{\log m + \log n}{k})\). This algorithm relies on buyer valuations having hereditary maximizers, a novel natural property satisfied for example by gross substitutes valuations. We obtain a matching lower bound with multi-unit valuations. In light of existing results [2], k days can thus improve the approximation by a Θ(k) factor. We also provide a posted price schedule with the same factor for positive affine allocative externalities, despite an increase in the optimal revenue.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  • Maria-Florina Balcan
    • 1
  • Florin Constantin
    • 1
  1. 1.College of ComputingGeorgia Institute of Technology 

Personalised recommendations