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The house-selling problem with reward rate criterion

Part of: Stochastic processes Sequential methods

Published online by Cambridge University Press:  14 July 2016

Vladimir V. Mazalov  and
Vesa Saario
Vladimir V. Mazalov*
Affiliation:
Russian Academy of Sciences
Vesa Saario*
Affiliation:
Mimosa Software OY
*
∗ Postal address: Institute of Applied Mathematical Research, Karelian Research Center of the Russian Academy of Sciences, Pushkinskaya Street 11, Petrozavodsk 185610, Russia. Email address: [email protected]
∗∗ Postal address: Mimosa Software OY, Pennantanhua 10, Fin-33470 Ylojarvi, Finland.
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Abstract

We consider a variant of the house-selling problem in which the seller has n objects for sale and the buyers come sequentially one by one. The objective of this paper is to find the seller's optimal strategy for choosing his selling price so as to maximize the average reward per selling attempt until the nth house is sold.

Keywords

Optimal priceaverage reward1/e-lawsecretary problem

MSC classification

Primary: 60G40: Stopping times; optimal stopping problems; gambling theory
Secondary: 62L15: Optimal stopping
Type
Short Communications
Information
Journal of Applied Probability , Volume 39 , Issue 3 , September 2002 , pp. 644 - 649
Copyright
Copyright © Applied Probability Trust 2002 

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