@misc{HalfpapSchlosser2019, author = {Halfpap, Stefan and Schlosser, Rainer}, title = {A Comparison of Allocation Algorithms for Partially Replicated Databases}, series = {2019 IEEE 35th International Conference on Data Engineering (ICDE)}, journal = {2019 IEEE 35th International Conference on Data Engineering (ICDE)}, publisher = {IEEE}, address = {New York}, isbn = {978-1-5386-7474-1}, issn = {1084-4627}, doi = {10.1109/ICDE.2019.00226}, pages = {2008 -- 2011}, year = {2019}, abstract = {Increasing demand for analytical processing capabilities can be managed by replication approaches. However, to evenly balance the replicas' workload shares while at the same time minimizing the data replication factor is a highly challenging allocation problem. As optimal solutions are only applicable for small problem instances, effective heuristics are indispensable. In this paper, we test and compare state-of-the-art allocation algorithms for partial replication. By visualizing and exploring their (heuristic) solutions for different benchmark workloads, we are able to derive structural insights and to detect an algorithm's strengths as well as its potential for improvement. Further, our application enables end-to-end evaluations of different allocations to verify their theoretical performance.}, language = {en} } @misc{SerthPodlesnyBornsteinetal.2017, author = {Serth, Sebastian and Podlesny, Nikolai and Bornstein, Marvin and Lindemann, Jan and Latt, Johanna and Selke, Jan and Schlosser, Rainer and Boissier, Martin and Uflacker, Matthias}, title = {An interactive platform to simulate dynamic pricing competition on online marketplaces}, series = {2017 IEEE 21st International Enterprise Distributed Object Computing Conference (EDOC)}, journal = {2017 IEEE 21st International Enterprise Distributed Object Computing Conference (EDOC)}, publisher = {Institute of Electrical and Electronics Engineers}, address = {New York}, isbn = {978-1-5090-3045-3}, issn = {2325-6354}, doi = {10.1109/EDOC.2017.17}, pages = {61 -- 66}, year = {2017}, abstract = {E-commerce marketplaces are highly dynamic with constant competition. While this competition is challenging for many merchants, it also provides plenty of opportunities, e.g., by allowing them to automatically adjust prices in order to react to changing market situations. For practitioners however, testing automated pricing strategies is time-consuming and potentially hazardously when done in production. Researchers, on the other side, struggle to study how pricing strategies interact under heavy competition. As a consequence, we built an open continuous time framework to simulate dynamic pricing competition called Price Wars. The microservice-based architecture provides a scalable platform for large competitions with dozens of merchants and a large random stream of consumers. Our platform stores each event in a distributed log. This allows to provide different performance measures enabling users to compare profit and revenue of various repricing strategies in real-time. For researchers, price trajectories are shown which ease evaluating mutual price reactions of competing strategies. Furthermore, merchants can access historical marketplace data and apply machine learning. By providing a set of customizable, artificial merchants, users can easily simulate both simple rule-based strategies as well as sophisticated data-driven strategies using demand learning to optimize their pricing strategies.}, language = {en} } @article{SchlosserWaltherBoissieretal.2019, author = {Schlosser, Rainer and Walther, Carsten and Boissier, Martin and Uflacker, Matthias}, title = {Automated repricing and ordering strategies in competitive markets}, series = {AI communications : AICOM ; the European journal on artificial intelligence}, volume = {32}, journal = {AI communications : AICOM ; the European journal on artificial intelligence}, number = {1}, publisher = {IOS Press}, address = {Amsterdam}, issn = {0921-7126}, doi = {10.3233/AIC-180603}, pages = {15 -- 29}, year = {2019}, abstract = {Merchants on modern e-commerce platforms face a highly competitive environment. They compete against each other using automated dynamic pricing and ordering strategies. Successfully managing both inventory levels as well as offer prices is a challenging task as (i) demand is uncertain, (ii) competitors strategically interact, and (iii) optimized pricing and ordering decisions are mutually dependent. We show how to derive optimized data-driven pricing and ordering strategies which are based on demand learning techniques and efficient dynamic optimization models. We verify the superior performance of our self-adaptive strategies by comparing them to different rule-based as well as data-driven strategies in duopoly and oligopoly settings. Further, to study and to optimize joint dynamic ordering and pricing strategies on online marketplaces, we built an interactive simulation platform. To be both flexible and scalable, the platform has a microservice-based architecture and allows handling dozens of competing merchants and streams of consumers with configurable characteristics.}, language = {en} } @article{RichlySchlosserBoissier2022, author = {Richly, Keven and Schlosser, Rainer and Boissier, Martin}, title = {Budget-conscious fine-grained configuration optimization for spatio-temporal applications}, series = {Proceedings of the VLDB Endowment}, volume = {15}, journal = {Proceedings of the VLDB Endowment}, number = {13}, publisher = {Association for Computing Machinery (ACM)}, address = {[New York]}, issn = {2150-8097}, doi = {10.14778/3565838.3565858}, pages = {4079 -- 4092}, year = {2022}, abstract = {Based on the performance requirements of modern spatio-temporal data mining applications, in-memory database systems are often used to store and process the data. To efficiently utilize the scarce DRAM capacities, modern database systems support various tuning possibilities to reduce the memory footprint (e.g., data compression) or increase performance (e.g., additional indexes). However, the selection of cost and performance balancing configurations is challenging due to the vast number of possible setups consisting of mutually dependent individual decisions. In this paper, we introduce a novel approach to jointly optimize the compression, sorting, indexing, and tiering configuration for spatio-temporal workloads. Further, we consider horizontal data partitioning, which enables the independent application of different tuning options on a fine-grained level. We propose different linear programming (LP) models addressing cost dependencies at different levels of accuracy to compute optimized tuning configurations for a given workload and memory budgets. To yield maintainable and robust configurations, we extend our LP-based approach to incorporate reconfiguration costs as well as a worst-case optimization for potential workload scenarios. Further, we demonstrate on a real-world dataset that our models allow to significantly reduce the memory footprint with equal performance or increase the performance with equal memory size compared to existing tuning heuristics.}, language = {en} } @article{SchlosserChenavazDimitrov2021, author = {Schlosser, Rainer and Chenavaz, R{\´e}gis Y. and Dimitrov, Stanko}, title = {Circular economy}, series = {International journal of production economics}, volume = {236}, journal = {International journal of production economics}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0925-5273}, doi = {10.1016/j.ijpe.2021.108117}, pages = {13}, year = {2021}, abstract = {In a circular economy, the use of recycled resources in production is a key performance indicator for management. Yet, academic studies are still unable to inform managers on appropriate recycling and pricing policies. We develop an optimal control model integrating a firm's recycling rate, which can use both virgin and recycled resources in the production process. Our model accounts for recycling influence both at the supply- and demandsides. The positive effect of a firm's use of recycled resources diminishes over time but may increase through investments. Using general formulations for demand and cost, we analytically examine joint dynamic pricing and recycling investment policies in order to determine their optimal interplay over time. We provide numerical experiments to assess the existence of a steady-state and to calculate sensitivity analyses with respect to various model parameters. The analysis shows how to dynamically adapt jointly optimized controls to reach sustainability in the production process. Our results pave the way to sounder sustainable practices for firms operating within a circular economy.}, language = {en} } @article{SchlosserBoissier2018, author = {Schlosser, Rainer and Boissier, Martin}, title = {Dealing with the dimensionality curse in dynamic pricing competition}, series = {Computers \& Operations Research}, volume = {100}, journal = {Computers \& Operations Research}, publisher = {Elsevier}, address = {Oxford}, issn = {0305-0548}, doi = {10.1016/j.cor.2018.07.011}, pages = {26 -- 42}, year = {2018}, abstract = {Most sales applications are characterized by competition and limited demand information. For successful pricing strategies, frequent price adjustments as well as anticipation of market dynamics are crucial. Both effects are challenging as competitive markets are complex and computations of optimized pricing adjustments can be time-consuming. We analyze stochastic dynamic pricing models under oligopoly competition for the sale of perishable goods. To circumvent the curse of dimensionality, we propose a heuristic approach to efficiently compute price adjustments. To demonstrate our strategy's applicability even if the number of competitors is large and their strategies are unknown, we consider different competitive settings in which competitors frequently and strategically adjust their prices. For all settings, we verify that our heuristic strategy yields promising results. We compare the performance of our heuristic against upper bounds, which are obtained by optimal strategies that take advantage of perfect price anticipations. We find that price adjustment frequencies can have a larger impact on expected profits than price anticipations. Finally, our approach has been applied on Amazon for the sale of used books. We have used a seller's historical market data to calibrate our model. Sales results show that our data-driven strategy outperforms the rule-based strategy of an experienced seller by a profit increase of more than 20\%.}, language = {en} } @article{Schlosser2015, author = {Schlosser, Rainer}, title = {Dynamic pricing and advertising of perishable products with inventory holding costs}, series = {Journal of economic dynamics \& control}, volume = {57}, journal = {Journal of economic dynamics \& control}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0165-1889}, doi = {10.1016/j.jedc.2015.05.017}, pages = {163 -- 181}, year = {2015}, abstract = {We examine a special class of dynamic pricing and advertising models for the sale of perishable goods, including marginal unit costs and inventory holding costs. The time horizon is assumed to be finite and we allow several model parameters to be dependent on time. For the stochastic version of the model, we derive closed-form expressions of the value function as well as of the optimal pricing and advertising policy in feedback form. Moreover, we show that for small unit shares, the model converges to a deterministic version of the problem, whose explicit solution is characterized by an overage and an underage case. We quantify the close relationship between the open-loop solution of the deterministic model and the expected evolution of optimally controlled stochastic sales processes. For both models, we derive sensitivity results. We find that in the case of positive holding costs, on average, optimal prices increase in time and advertising rates decrease. Furthermore, we analytically verify the excellent quality of optimal feedback policies of deterministic models applied in stochastic models. (C) 2015 Elsevier B.V. All rights reserved.}, language = {en} } @article{KastiusSchlosser2022, author = {Kastius, Alexander and Schlosser, Rainer}, title = {Dynamic pricing under competition using reinforcement learning}, series = {Journal of revenue and pricing management}, volume = {21}, journal = {Journal of revenue and pricing management}, number = {1}, publisher = {Springer Nature Switzerland AG}, address = {Cham}, issn = {1476-6930}, doi = {10.1057/s41272-021-00285-3}, pages = {50 -- 63}, year = {2022}, abstract = {Dynamic pricing is considered a possibility to gain an advantage over competitors in modern online markets. The past advancements in Reinforcement Learning (RL) provided more capable algorithms that can be used to solve pricing problems. In this paper, we study the performance of Deep Q-Networks (DQN) and Soft Actor Critic (SAC) in different market models. We consider tractable duopoly settings, where optimal solutions derived by dynamic programming techniques can be used for verification, as well as oligopoly settings, which are usually intractable due to the curse of dimensionality. We find that both algorithms provide reasonable results, while SAC performs better than DQN. Moreover, we show that under certain conditions, RL algorithms can be forced into collusion by their competitors without direct communication.}, language = {en} } @article{SchlosserRichly2019, author = {Schlosser, Rainer and Richly, Keven}, title = {Dynamic pricing under competition with data-driven price anticipations and endogenous reference price effects}, series = {Journal of revenue and pricing management}, volume = {18}, journal = {Journal of revenue and pricing management}, number = {6}, publisher = {Palgrave Macmillan}, address = {Basingstoke}, issn = {1476-6930}, doi = {10.1057/s41272-019-00206-5}, pages = {451 -- 464}, year = {2019}, abstract = {Online markets have become highly dynamic and competitive. Many sellers use automated data-driven strategies to estimate demand and to update prices frequently. Further, notification services offered by marketplaces allow to continuously track markets and to react to competitors' price adjustments instantaneously. To derive successful automated repricing strategies is challenging as competitors' strategies are typically not known. In this paper, we analyze automated repricing strategies with data-driven price anticipations under duopoly competition. In addition, we account for reference price effects in demand, which are affected by the price adjustments of both competitors. We show how to derive optimized self-adaptive pricing strategies that anticipate price reactions of the competitor and take the evolution of the reference price into account. We verify that the results of our adaptive learning strategy tend to optimal solutions, which can be derived for scenarios with full information. Finally, we analyze the case in which our learning strategy is played against itself. We find that our self-adaptive strategies can be used to approximate equilibria in mixed strategies.}, language = {en} } @misc{SchlosserKossmannBoissier2019, author = {Schlosser, Rainer and Kossmann, Jan and Boissier, Martin}, title = {Efficient Scalable Multi-Attribute Index Selection Using Recursive Strategies}, series = {2019 IEEE 35th International Conference on Data Engineering (ICDE)}, journal = {2019 IEEE 35th International Conference on Data Engineering (ICDE)}, publisher = {IEEE}, address = {New York}, isbn = {978-1-5386-7474-1}, issn = {1084-4627}, doi = {10.1109/ICDE.2019.00113}, pages = {1238 -- 1249}, year = {2019}, abstract = {An efficient selection of indexes is indispensable for database performance. For large problem instances with hundreds of tables, existing approaches are not suitable: They either exhibit prohibitive runtimes or yield far from optimal index configurations by strongly limiting the set of index candidates or not handling index interaction explicitly. We introduce a novel recursive strategy that does not exclude index candidates in advance and effectively accounts for index interaction. Using large real-world workloads, we demonstrate the applicability of our approach. Further, we evaluate our solution end to end with a commercial database system using a reproducible setup. We show that our solutions are near-optimal for small index selection problems. For larger problems, our strategy outperforms state-of-the-art approaches in both scalability and solution quality.}, language = {en} }