Competitive Analysis for Online Leasing Problem with Compound Interest Rate

We introduce the compound interest rate into the continuous version of the online leasing problem and discuss the generalized model by competitive analysis. On the one hand, the optimal deterministic strategy and its competitive ratio are obtained; on the other hand, a nearly optimal randomized stra...

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Bibliographic Details
Published in:Abstract and Applied Analysis 2011-01, Vol.2011 (2011), p.268-279
Main Authors: Yang, Xingyu, Zhang, Weiguo, Xu, Weijun, Zhang, Yong
Format: Article
Language:English
Subjects:
Interest rates
Leases
Mathematical economics
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Summary:We introduce the compound interest rate into the continuous version of the online leasing problem and discuss the generalized model by competitive analysis. On the one hand, the optimal deterministic strategy and its competitive ratio are obtained; on the other hand, a nearly optimal randomized strategy is constructed and a lower bound for the randomized competitive ratios is proved by Yao's principle. With the help of numerical examples, the theoretical results show that the interest rate puts off the purchase date and diminishes the uncertainty involved in the decision making.
ISSN:1085-3375
1687-0409
DOI:10.1155/2011/156254