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The bahncard problem with interest rate and risk

  • Xi'an Jiaotong University

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

4 Scopus citations

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 α = 1/1+i. We prove that the Bahncard problem with the interest rate is 1 + (1 - β)αm+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 + (1-β)α m*/tr*-(1-βαm*), where r* is the optimal competitive ratio for the Bahncard problem with the interest rate and β is the percentage of discount.

Original languageEnglish
Title of host publicationInternet and Network Economics - First International Workshop, WINE 2005, Proceedings
Pages307-314
Number of pages8
DOIs
StatePublished - 2005
Event1st International Workshop on Internet and Network Economics, WINE 2005 - Hong Kong, China
Duration: 15 Dec 200517 Dec 2005

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume3828 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference1st International Workshop on Internet and Network Economics, WINE 2005
Country/TerritoryChina
CityHong Kong
Period15/12/0517/12/05

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