Online leasing problem with price fluctuations and the second-hand transaction

Xin Feng () and Chengbin Chu ()
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Xin Feng: Fujian Agriculture and Forestry University
Chengbin Chu: ESIEE Paris, Universite Paris-Est

Journal of Combinatorial Optimization, 2022, vol. 43, issue 5, No 16, 1280-1297

Abstract: Abstract This paper proposes an online leasing problem considering both price fluctuations and the second-hand transaction. In the studied problem, the price of the required equipment is assumed to fluctuate over time and lie in a predetermined range [1, M]. Moreover, the price between two adjacent times is controlled within an acceptable range [1/α, α]. The equipment can be sold through second-hand transaction after its end of use. The selling price in the second-hand transaction is assumed to vary along with the price fluctuations. The aim of this paper is to find the best possible online leasing strategy which generates a minimal cost for using the equipment. We present an online leasing algorithm for solving this problem and prove it to be the optimal online algorithm. Computational experiments are conducted to evaluate the characteristics of the problem and the performance of the proposed online leasing algorithm.

Keywords: Online leasing; Competitive analysis; Price fluctuations; Second-hand transaction (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10878-020-00640-x

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