Learning dynamic prices in multiseller electronic retail markets with price sensitive customers, stochastic demands, and inventory replenishments

In this paper, we use reinforcement learning (RL) as a tool to study price dynamics in an electronic retail market consisting of two competing sellers, and price sensitive and lead time sensitive customers. Sellers, offering identical products, compete on price to satisfy stochastically arriving demands (customers), and follow standard inventory control and replenishment policies to manage their inventories. In such a generalized setting, RL techniques have not previously been applied. We consider two representative cases: 1) no information case, were none of the sellers has any information about customer queue levels, inventory levels, or prices at the competitors; and 2) partial information case, where every seller has information about the customer queue levels and inventory levels of the competitors. Sellers employ automated pricing agents, or pricebots, which use RL-based pricing algorithms to reset the prices at random intervals based on factors such as number of back orders, inventory levels, and replenishment lead times, with the objective of maximizing discounted cumulative profit. In the no information case, we show that a seller who uses Q-learning outperforms a seller who uses derivative following (DF). In the partial information case, we model the problem as a Markovian game and use actor-critic based RL to learn dynamic prices. We believe our approach to solving these problems is a new and promising way of setting dynamic prices in multiseller environments with stochastic demands, price sensitive customers, and inventory replenishments.

Predicting price-tag for customized goods

We discuss a dynamic pricing model which will aid automobile manufacturer in choosing the right price for customer segment. Though there is oligopoly market structure, the customers get "locked" into a particular technology/company which virtually makes the situation akin to a monopoly. There are associated network externalities and positive feedback. The key idea in monopoly pricing lies in extracting the customer surplus by exploiting the respective elasticities of demand. We present a Walrasian general equilibrium approach to determine the segment price. We compare the prices obtained from optimization model with that from Walrasian dynamics. The results are encouraging and can serve as a critical factor in Customer Relationship Management (CRM) and thereby effectively manage the lock-in.

On the generalized continuum model of dipolar solvation dynamics

The continuum model of dipolar solvation dynamics is reviewed. The effects of non-spherical molecular shapes, of non-Debye dielectric relaxation of the polar solvent and of dielectric inhomogeneity of the solvent around the solute dipole are investigated. Several new theoretical results are presented. It is found that our generalized continuum model, which takes into account the dielectric inhomogeneity of the surrounding solvent, provides a description of solvation dynamics consistent with recent experimental results.

Interference in Multiprocessor Systems with Localized Memory Access Probabilities

Past studies of memory interference in multiprocessor systems have generally assumed that the references of each processor are uniformly distributed among the memory modules. In this paper we develop a model with local referencing, which reflects more closely the behavior of real-life programs. This model is analyzed using Markov chain techniques and expressions are derived for the multiprocessor performance. New expressions are also obtained for the performance in the traditional uniform reference model and are compared with other expressions-available in the literature. Results of a simulation study are given to show the accuracy of the expressions for both models.

Length-scale dependent mechanical properties of Al-Cu eutectic alloy: Molecular dynamics based model and its experimental verification

This paper attempts to gain an understanding of the effect of lamellar length scale on the mechanical properties of two-phase metal-intermetallic eutectic structure. We first develop a molecular dynamics model for the in-situ grown eutectic interface followed by a model of deformation of Al-Al2Cu lamellar eutectic. Leveraging the insights obtained from the simulation on the behaviour of dislocations at different length scales of the eutectic, we present and explain the experimental results on Al-Al2Cu eutectic with various different lamellar spacing. The physics behind the mechanism is further quantified with help of atomic level energy model for different length scale as well as different strain. An atomic level energy partitioning of the lamellae and the interface regions reveals that the energy of the lamellae core are accumulated more due to dislocations irrespective of the length-scale. Whereas the energy of the interface is accumulated more due to dislocations when the length-scale is smaller, but the trend is reversed when the length-scale is large beyond a critical size of about 80 nm. (C) 2014 Author(s).

State space formulation of ammonia reactor dynamics

The specific objective of this paper is to develop a state space model of a tubular ammonia reactor which is the heart of an ammonia plant in a fertiliser complex. A ninth order model with three control inputs and two disturbance inputs is generated from the nonlinear distributed model using linearization and lumping approximations. The lumped model is chosen such that the steady state temperature at the exit of the catalyst bed computed from the simplified state space model is close enough to the one computed from the nonlinear steady state model. The model developed in this paper is very useful for the design of continuous/discrete versions of single variable/multivariable control algorithms.

Investigation of Missile-Shaped Body with Forward-Facing Cavity at Mach 8

A blunt-nosed hypersonic missile mounted with a forward-facing cavity is a good alternative to reduce the stagnation heating rates. The effects of a forward-racing cavity on heat transfer and aerodynamic coefficients are addressed in this paper. Tests were carried out in hypersonic shock tunnel HST2, at a hypersonic Mach number of 8 using a 41 deg apex-angle blunt cone. The aerodynamic forces on the test model with and without a forward-facing cavity at various angles of attack are measured by using an internally mountable accelerometer force balance system. Heat flux measurements have been carried out on the test model with and without a forward-facing cavity of the entire surface at zero degree angle of attack with platinum sensors. A numerical simulation was also carried out using the computational fluid dynamics code (CFX-Ansys 5.7). An important result of this study is that the smaller cavity diameter has the highest lift-to-drag ratio, whereas the medium cavity has the highest heat flux reduction. Theshock structure around the test model has also been visualized using the Schlieren flow visualization technique. The visualized shock structure and the measured aerodynamic forces on the missile-shaped body with cavity configurations agree well with the axisymmetric numerical simulations.

W physics at the ILC with polarized beams as a probe of the Littlest Higgs model

We study the possibility of using W pair production and leptonic decay of one of the W's at the ILC with polarized beams as a probe of the Littlest Higgs Model. We consider cross-sections, polarization fractions of the W's, leptonic decay energy and angular distributions, and left-right polarization asymmetry as probes of the model. With parameter values allowed by present experimental constraints detectable effects on these observables at typical ILC energies of 500 GeV and 800 GeV will be present. Beam polarization is further found to enhance the sensitivity.

Steady flow of a maxwell fluid in a porous cylindrical annulus with circular cross-section

When a fluid with memory is injected into any flow region some assumptions regarding the initial state of stress have to be made in order to determine the state of stress at any subsequent instant. For a Maxwell fluid, it is assumed that the fluid near the surface of injection is suddenly stressed and responds by starting flow in accordance with the mechanical model chosen. The flow of a Maxwell fluid with a single relaxation time has been determined under the above assumption in the following two cases: (i) annulus between two porous concentric circular cylinders, and (ii) space between two porous and infinitely extending parallel plates. The nature of flow in the present case is similar to that of the Reiner-Rivlin fluids obtained by Narasimhan2).

Non-linear couette flow with heat transfer using the B-G-K model

In recent years a large number of investigators have devoted their efforts to the study of flow and heat transfer in rarefied gases, using the BGK [1] model or the Boltzmann kinetic equation. The velocity moment method which is based on an expansion of the distribution function as a series of orthogonal polynomials in velocity space, has been applied to the linearized problem of shear flow and heat transfer by Mott-Smith [2] and Wang Chang and Uhlenbeck [3]. Gross, Jackson and Ziering [4] have improved greatly upon this technique by expressing the distribution function in terms of half-range functions and it is this feature which leads to the rapid convergence of the method. The full-range moments method [4] has been modified by Bhatnagar [5] and then applied to plane Couette flow using the B-G-K model. Bhatnagar and Srivastava [6] have also studied the heat transfer in plane Couette flow using the linearized B-G-K equation. On the other hand, the half-range moments method has been applied by Gross and Ziering [7] to heat transfer between parallel plates using Boltzmann equation for hard sphere molecules and by Ziering [83 to shear and heat flow using Maxwell molecular model. Along different lines, a moment method has been applied by Lees and Liu [9] to heat transfer in Couette flow using Maxwell's transfer equation rather than the Boltzmann equation for distribution function. An iteration method has been developed by Willis [10] to apply it to non-linear heat transfer problems using the B-G-K model, with the zeroth iteration being taken as the solution of the collisionless kinetic equation. Krook [11] has also used the moment method to formulate the equivalent continuum equations and has pointed out that if the effects of molecular collisions are described by the B-G-K model, exact numerical solutions of many rarefied gas-dynamic problems can be obtained. Recently, these numerical solutions have been obtained by Anderson [12] for the non-linear heat transfer in Couette flow,

Hysteresis in model spin systems

The authors study the hysteretic response of model spin systems to periodic time-varying fields H(t) as a function of the amplitude H0 and the frequency Omega . At fixed H0, they find conventional, squarish hysteresis loops at low Omega , and rounded, roughly elliptical loops at high Omega , in agreement with experiment. For the O(N to infinity ), d=3, ( Phi 2)2 model with Langevin dynamics, they find a novel scaling behaviour for the area A of the hysteresis loop, of the form (valid for low fields) A approximately=H0066 Omega 0.33.

A study of symbolic processing and computational aspects in helicopter dynamics

Even research models of helicopter dynamics often lead to a large number of equations of motion with periodic coefficients; and Floquet theory is a widely used mathematical tool for dynamic analysis. Presently, three approaches are used in generating the equations of motion. These are (1) general-purpose symbolic processors such as REDUCE and MACSYMA, (2) a special-purpose symbolic processor, DEHIM (Dynamic Equations for Helicopter Interpretive Models), and (3) completely numerical approaches. In this paper, comparative aspects of the first two purely algebraic approaches are studied by applying REDUCE and DEHIM to the same set of problems. These problems range from a linear model with one degree of freedom to a mildly non-linear multi-bladed rotor model with several degrees of freedom. Further, computational issues in applying Floquet theory are also studied, which refer to (1) the equilibrium solution for periodic forced response together with the transition matrix for perturbations about that response and (2) a small number of eigenvalues and eigenvectors of the unsymmetric transition matrix. The study showed the following: (1) compared to REDUCE, DEHIM is far more portable and economical, but it is also less user-friendly, particularly during learning phases; (2) the problems of finding the periodic response and eigenvalues are well conditioned.

Hysteresis in model spin system

The aim of this paper is to construct a nonequilibrium statistical‐mechanics theory to study hysteresis in ferromagnetic systems. We study the hysteretic response of model spin systems to periodic magnetic fields H(t) as a function of the amplitude H0 and frequency Ω. At fixed H0, we find conventional, squarelike hysteresis loops at low Ω, and rounded, roughly elliptical loops at high Ω, in agreement with experiments. For the O(N→∞), d=3, (Φ2)2 model with Langevin dynamics, we find a novel scaling behavior for the area A of the hysteresis loop, of the form A∝H0.660Ω0.33. We carry out a Monte Carlo simulation of the hysteretic response of the two‐dimensional, nearest‐neighbor, ferromagnetic Ising model. These results agree qualitatively with the results obtained for the O(N) model.

Dense granular flow down an inclined plane A comparison between the hard particle model and soft particle simulations

The granular flow down an inclined plane is simulated using the discrete element (DE) technique to examine the extent to which the dynamics of an unconfined dense granular flow can be well described by a hard particle model First, we examine the average coordination number for the particles in the flow down an inclined plane using the DE technique using the linear contact model with and without friction, and the Hertzian contact model with friction The simulations show that the average coordination number decreases below 1 for values of the spring stiffness corresponding to real materials, such as sand and glass, even when the angle of inclination is only 10 larger than the angle of repose Additional measures of correlations in the system, such as the fraction of particles with multibody contact, the force ratio (average ratio of the magnitudes of the largest and the second largest force on a particle), and the angle between the two largest forces on the particle, show no evidence of force chains or other correlated motions in the system An analysis of the bond-orientational order parameter indicates that the flow is in the random state, as in event-driven (ED) simulations V Kumaran, J Fluid Mech 632, 107 (2009), J Fluid Mech 632, 145 (2009)] The results of the two simulation techniques for the Bagnold coefficients (ratio of stress and square of the strain rate) and the granular temperature (mean square of the fluctuating velocity) are compared with the theory V Kumaran, J Fluid Mech 632, 107 (2009), J Fluid Mech 632, 145 (2009)] and are found to be in quantitative agreement In addition, we also conduct a comparison of the collision frequency and the distribution of the precollisional relative velocities of particles in contact The strong correlation effects exhibited by these two quantities in event-driven simulations V Kumaran, J Fluid Mech 632, 145 (2009)] are also found in the DE simulations (C) 2010 American Institute of Physics doi 10 1063/1 3504660]

A model investigation of vegetation-atmosphere interactions on a millennial timescale

A terrestrial biosphere model with dynamic vegetation capability, Integrated Biosphere Simulator (IBIS2), coupled to the NCAR Community Atmosphere Model (CAM2) is used to investigate the multiple climate-forest equilibrium states of the climate system. A 1000-year control simulation and another 1000-year land cover change simulation that consisted of global deforestation for 100 years followed by re-growth of forests for the subsequent 900 years were performed. After several centuries of interactive climate-vegetation dynamics, the land cover change simulation converged to essentially the same climate state as the control simulation. However, the climate system takes about a millennium to reach the control forest state. In the absence of deep ocean feedbacks in our model, the millennial time scale for converging to the original climate state is dictated by long time scales of the vegetation dynamics in the northern high latitudes. Our idealized modeling study suggests that the equilibrium state reached after complete global deforestation followed by re-growth of forests is unlikely to be distinguishable from the control climate. The real world, however, could have multiple climate-forest states since our modeling study is unlikely to have represented all the essential ecological processes (e. g. altered fire regimes, seed sources and seedling establishment dynamics) for the reestablishment of major biomes.