Mining the network value of customers
Proceedings of the seventh ACM SIGKDD international conference on Knowledge discovery and data mining
Computing the optimal strategy to commit to
EC '06 Proceedings of the 7th ACM conference on Electronic commerce
On the submodularity of influence in social networks
Proceedings of the thirty-ninth annual ACM symposium on Theory of computing
Dynamic pricing for impatient bidders
SODA '07 Proceedings of the eighteenth annual ACM-SIAM symposium on Discrete algorithms
Optimal marketing strategies over social networks
Proceedings of the 17th international conference on World Wide Web
Efficient algorithms to solve Bayesian Stackelberg games for security applications
AAAI'08 Proceedings of the 23rd national conference on Artificial intelligence - Volume 3
Computing optimal strategies to commit to in extensive-form games
Proceedings of the 11th ACM conference on Electronic commerce
Optimal pricing in the presence of local network effects
WINE'10 Proceedings of the 6th international conference on Internet and network economics
Optimal iterative pricing over social networks
WINE'10 Proceedings of the 6th international conference on Internet and network economics
Equilibrium pricing with positive externalities
WINE'10 Proceedings of the 6th international conference on Internet and network economics
Influential nodes in a diffusion model for social networks
ICALP'05 Proceedings of the 32nd international conference on Automata, Languages and Programming
Hi-index | 5.23 |
We study the problem of selling an item to strategic buyers in the presence of positive historical externalities, where the value of a product increases as more people buy and use it. This increase in the value of the product is the result of resolving bugs or security holes after more usage. We consider a continuum of buyers that are partitioned into types where each type has a valuation function based on the actions of other buyers. Given a fixed sequence of prices, or price trajectory, buyers choose a day on which to purchase the product, i.e. they have to decide whether to purchase the product early in the game or later after more people already own it. We model this strategic setting as a game, study existence and uniqueness of the equilibria, and design an FPTAS to compute an approximately revenue-maximizing pricing trajectory for the seller in two special cases: the symmetric settings in which there is just a single buyer type, and the linear settings that are characterized by an initial type-independent bias and a linear type-dependent influenceability coefficient.