The bahncard problem with interest rate and risk

Authors:
Lili Ding;Yinfeng Xu;Shuhua Hu
Affiliations:
School of Management, Xi’an Jiaotong University, Shaanxi, P.R. China;School of Management, Xi’an Jiaotong University, Shaanxi, P.R. China;School of Management, Xi’an Jiaotong University, Shaanxi, P.R. China
Venue:
WINE'05 Proceedings of the First international conference on Internet and Network Economics
Year:
2005

Citing 6
Cited 0

Amortized efficiency of list update and paging rules

Communications of the ACM
Competitive solutions for online financial problems

ACM Computing Surveys (CSUR)
Online computation and competitive analysis

Online computation and competitive analysis
The statistical adversary allows optimal money-making trading strategies

Proceedings of the sixth annual ACM-SIAM symposium on Discrete algorithms
Dynamic TCP acknowledgement and other stories about e/(e-1)

STOC '01 Proceedings of the thirty-third annual ACM symposium on Theory of computing
On The Bahncard Problem

COCOON '98 Proceedings of the 4th Annual International Conference on Computing and Combinatorics

Quantified Score

Hi-index	0.00

Visualization

Abstract

This paper investigated a new framework for the competitive analysis of the Bahncard problem. In contrast to the earlier approach we introduce the interest rate i and the risk tolerance t into the model, in which the traveller can develop the optimal trading strategies based on his risk preference. Set $\alpha=\frac{1}{1+i}$. We prove that the Bahncard problem with the interest rate is $1+(1-\beta)\alpha^{{m^*}+1}\,$-competitive, where m* is the critical point. Then we further design a t-tolerance strategy and present a surprisingly flexible competitive ratio of $1+\frac{(1-\beta)\alpha^{m^*}}{tr^*-(1-\beta\alpha^{m^*})}$ , where r* is the optimal competitive ratio for the Bahncard problem with the interest rate and β is the percentage of discount.