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image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao https://doi.org/10.1...arrow_drop_down
image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao
SSRN Electronic Journal
Article . 2020 . Peer-reviewed
Data sources: Crossref
Management Science
Article . 2023 . Peer-reviewed
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Conference object . 2021
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DBLP
Article . 2023
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Online Assortment Optimization for Two-sided Matching Platforms

Authors: Ali Aouad; Daniela Sabán;

Online Assortment Optimization for Two-sided Matching Platforms

Abstract

Motivated by online labor markets, we consider the online assortment optimization problem faced by a two-sided matching platform that hosts a set of suppliers waiting to match with a customer. Arriving customers are shown an assortment of suppliers and may choose to issue a match request to one of them. After spending some time on the platform, each supplier reviews all the match requests she has received and, based on her preferences, she chooses whether to match with a customer or to leave unmatched. We study how platforms should design online assortment algorithms to maximize the expected number of matches in such two-sided settings. We establish that a simple greedy algorithm is 1/2-competitive against an optimal clairvoyant algorithm that knows in advance the full sequence of customers’ arrivals. However, unlike related online assortment problems, no randomized algorithm can achieve a better competitive ratio, even in asymptotic regimes. To advance beyond this general impossibility, we consider structured settings where suppliers’ preferences are described by the multinomial logit and nested logit choice models. We develop new forms of balancing algorithms, which we call preference-aware, that leverage structural information about suppliers’ choice models to design the associated discount function. In certain settings, these algorithms attain competitive ratios provably larger than the standard “barrier” of [Formula: see text] in the adversarial arrival model. Our results suggest that the shape and timing of suppliers’ choices play critical roles in designing online assortment algorithms for two-sided matching platforms. This paper was accepted by Omar Besbes, revenue management and market analytics. Supplemental Material: The data files and online appendices are available at https://doi.org/10.1287/mnsc.2022.4464 .

Country
United Kingdom
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Keywords

330, Algorithms

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    influence
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    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
35
Top 10%
Top 10%
Top 10%
Green