TY - JOUR
T1 - Promoting assets selling through advertisement channels
AU - Deutsch, Yael
AU - David, Israel
N1 - Publisher Copyright:
© 2020
PY - 2021/4/15
Y1 - 2021/4/15
N2 - We consider the following multi-unit selling problem: several identical units of some commodity need to be sold, one at a time, to a stream of arriving bidders. Bids arrive periodically, with values that are i.i.d. positive random variables. When a bid arrives, the seller should decide whether to accept it or not, weighting the possibility of the arrival of a better offer against the cost of waiting, which consists of periodic holding costs, discounting of future revenues and expenditures, and advertising. Despite the complex model, rather simple structural results are attainable. We present a simple dynamic programming calculation scheme of the optimal double-argument policy (when to sell and how to advertise).
AB - We consider the following multi-unit selling problem: several identical units of some commodity need to be sold, one at a time, to a stream of arriving bidders. Bids arrive periodically, with values that are i.i.d. positive random variables. When a bid arrives, the seller should decide whether to accept it or not, weighting the possibility of the arrival of a better offer against the cost of waiting, which consists of periodic holding costs, discounting of future revenues and expenditures, and advertising. Despite the complex model, rather simple structural results are attainable. We present a simple dynamic programming calculation scheme of the optimal double-argument policy (when to sell and how to advertise).
KW - Decision analysis
KW - Dynamic programming
KW - Marketing
UR - http://www.scopus.com/inward/record.url?scp=85098084115&partnerID=8YFLogxK
U2 - 10.1016/j.amc.2020.125836
DO - 10.1016/j.amc.2020.125836
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AN - SCOPUS:85098084115
SN - 0096-3003
VL - 395
JO - Applied Mathematics and Computation
JF - Applied Mathematics and Computation
M1 - 125836
ER -