TCS Journal 2015 Journal Article
- Francis Y.L. Chin
- Bin Fu
- Jiuling Guo
- Shuguang Han
- Jueliang Hu
- Minghui Jiang
- Guohui Lin
- Hing-Fung Ting
In the one-way trading problem, a seller has L units of product to be sold to a sequence σ of buyers u 1, u 2, …, u σ arriving online and he needs to decide, for each u i, the amount of product to be sold to u i at the then-prevailing market price p i. The objective is to maximize the seller's revenue. We note that all previous algorithms for the problem need to impose some artificial upper bound M and lower bound m on the market prices, and the seller needs to know either the values of M and m, or their ratio M / m, at the outset. This paper gives a one-way trading algorithm that does not impose any bounds on market prices and whose performance guarantee depends directly on the input. In particular, we give a class of one-way trading algorithms such that for any positive integer h and any positive number ϵ, we have an algorithm A h, ϵ that has competitive ratio O ( log r ⁎ ( log ( 2 ) r ⁎ ) … ( log ( h − 1 ) r ⁎ ) ( log ( h ) r ⁎ ) 1 + ϵ ) if the value of r ⁎ = p ⁎ / p 1, the ratio of the highest market price p ⁎ = max i p i and the first price p 1, is large and satisfies log ( h ) r ⁎ > 1, where log ( i ) x denotes the application of the logarithm function i times to x; otherwise, A h, ϵ has a constant competitive ratio Γ h. We also show that our algorithms are near optimal by showing that given any positive integer h and any one-way trading algorithm A, we can construct a sequence of buyers σ with log ( h ) r ⁎ > 1 such that the ratio between the optimal revenue and the revenue obtained by A is Ω ( log r ⁎ ( log ( 2 ) r ⁎ ) … ( log ( h − 1 ) r ⁎ ) ( log ( h ) r ⁎ ) ). A special case of the one-way trading is also studied, in which the L units of product are comprised of L items, each of which must be sold atomically (or equivalently, the amount of product sold to each buyer must be an integer). Furthermore, a complementary problem to the one-way trading problem, say, the one-way buying problem, is studied in this paper. In the one-way buying problem, a buyer wants to purchase one unit of product through a sequence of n sellers v 1, v 2, …, v n arriving online, and she needs to decide the fraction to purchase from each v i at the then-prevailing market price p i. Her objective is to minimize the cost. The optimal competitive algorithms whose performance guarantees depend only on the lowest market price p ⁎ = min i p i, and one of M and φ, the price fluctuation ratio, are presented.