Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Dynamic pricing under nested logit demand   Recently, there is growing interest and need for dynamic pricing algorithms,
especially, in the field of online marketplaces by offering smart pricing
options for big online stores. We present an approach to adjust prices based on
the observed online market data. The key idea is to characterize optimal prices
as minimizers of a total expected revenue function, which turns out to be
convex. We assume that consumers face information processing costs, hence,
follow a discrete choice demand model, and suppliers are equipped with quantity
adjustment costs. We prove the strong smoothness of the total expected revenue
function by deriving the strong convexity modulus of its dual. Our
gradient-based pricing schemes outbalance supply and demand at the convergence
rates of $\mathcal{O}(\frac{1}{t})$ and $\mathcal{O}(\frac{1}{t^2})$,
respectively. This suggests that the imperfect behavior of consumers and
suppliers helps to stabilize the market.

13
The categories of this paper are: quant-ph
31
The categories of this paper are: ao-sci
0
The categories of this paper are: hep-ph
3
The categories of this paper are: physics
19
The categories of this paper are: eess
25
The categories of this paper are: patt-sol
20
The categories of this paper are: acc-phys
24
The categories of this paper are: dg-ga
22
The categories of this paper are: chao-dyn
5
The categories of this paper are: gr-qc
6
The categories of this paper are: astro-ph
32
The categories of this paper are: atom-ph
11
The categories of this paper are: hep-lat
17
The categories of this paper are: q-fin
9
The categories of this paper are: nlin
34
The categories of this paper are: chem-ph