Finding Texture Boundaries in Images

Texture provides one cue for identifying the physical cause of an intensity edge, such as occlusion, shadow, surface orientation or reflectance change. Marr, Julesz, and others have proposed that texture is represented by small lines or blobs, called 'textons' by Julesz [1981a], together with their attributes, such as orientation, elongation, and intensity. Psychophysical studies suggest that texture boundaries are perceived where distributions of attributes over neighborhoods of textons differ significantly. However, these studies, which deal with synthetic images, neglect to consider two important questions: How can these textons be extracted from images of natural scenes? And how, exactly, are texture boundaries then found? This thesis proposes answers to these questions by presenting an algorithm for computing blobs from natural images and a statistic for measuring the difference between two sample distributions of blob attributes. As part of the blob detection algorithm, methods for estimating image noise are presented, which are applicable to edge detection as well.

Temporary and Permanent Buyout Prices in Online Auctions

Increasingly used in online auctions, buyout prices allow bidders to instantly purchase the item listed. We distinguish two types: a temporary buyout option disappears if a bid above the reserve price is made; a permanent one remains throughout the auction or until it is exercised. In a model featuring time-sensitive bidders with uniform valuations and Poisson arrivals but endogenous bidding times, we focus on finding temporary and permanent buyout prices maximizing the seller's discounted revenue, and examine the relative benefit of using each type of option in various environments. We characterize equilibrium bidder strategies in both cases and then solve the problem of maximizing seller's utility by simulation. Our numerical experiments suggest that buyout options may significantly increase a seller’s revenue. Additionally, while a temporary buyout option promotes early bidding, a permanent option gives an incentive to the bidders to bid late, thus leading to concentrated bids near the end of the auction.