Abstract
We consider a model in which we have k items to be sold. Potential buyers make offers in a sequential fashion. Once made, the offer is either rejected or marked for acceptance. Once k items have been marked, the items are then sold to the buyers whose offers were marked, but at a price equal to the minimum of the k marked offers. Assuming that the successive offers are independent and identically distributed according to a specified distribution and that there is a fixed cost incurred whenever an offer is rejected, we determine structural results about the optimal policy, present computational approaches for finding the optimal policy, and give some heuristic policies.
Original language | English (US) |
---|---|
Pages (from-to) | 843-851 |
Number of pages | 9 |
Journal | Journal of Applied Probability |
Volume | 44 |
Issue number | 4 |
DOIs | |
State | Published - Dec 2007 |
Externally published | Yes |
Keywords
- Marked stopping problem
- Online heuristic
- Structure of optimal policy
- Weakest link
ASJC Scopus subject areas
- Statistics and Probability
- General Mathematics
- Statistics, Probability and Uncertainty