The paper argues that large language model (LLM) providers, constrained by compute, often degrade service during congestion by routing queries to smaller models, cutting reasoning effort, or truncating context. It shows that this practice misrepresents costs because degraded answers can fail, leading to retries that inflate traffic or churn that erodes lifetime value. By modeling inference allocation with newsvendor, retry, and queueing frameworks, the authors derive a ‘shadow price of intelligence’ that quantifies the marginal value of each query, revealing that throttling under congestion acts as a demand lever rather than a cost lever.
By Elioth Sanabria
arXiv:2505. 21331v2 Announce Type: replace-cross Abstract: In content moderation for social media platforms, the cost of delaying the review of a content is proportional to its view trajectory, which fluctuates and is apriori unknown.
By Caner Gocmen, Thodoris Lykouris, Deeksha Sinha, Wentao Weng
arXiv:2609.00710v1 Announce Type: cross
Abstract: An LLM application often sells or internally allocates several service products: a small or premium model, a short or long token cap, and possibly mu...
By Patrick Wong
arXiv:2606. 16465v1 Announce Type: new Abstract: AI agents can now take irreversible actions in operational systems, but agent-caused losses are still not clearly assigned, priced, or transferred.
By Binyan Xu, Xilin Dai, Fan Yang, Kehuan Zhang
arXiv:2606. 03736v2 Announce Type: replace-cross Abstract: We study resource-constrained dynamic pricing when the seller seeks revenue and valid inference about demand at a price fixed before the selling season.
By Ruicheng Ao, Jiashuo Jiang, David Simchi-Levi
arXiv:2610.41132v1 Announce Type: cross
Abstract: The EU Platform Work Directive, to be transposed by December 2026, requires ride-hailing platforms to state in plain language the main parameters of...
By Xinyu Wang, Andres Fielbaum
The paper investigates when pooling information across intermittent-demand series is beneficial, focusing on the trade‑off between forgetting past data and borrowing strength from other series. By applying a single exponential recency operator to both item‑ and group‑level statistics in a hierarchical empirical‑Bayes hurdle model, the authors derive a diagnostic that quantifies credibility and resolution, and use it to screen for regimes where refinement offers no advantage. Empirical tests on five public panels of over 19,000 series show that the diagnostic accurately predicts when shared priors improve accuracy, and the resulting forecaster (EBB) matches specialist Gaussian‑process models within a few percent while being far cheaper to run.
By Zong-Han Bai, Po-Yen Chu
arXiv:2608. 04669v1 Announce Type: new Abstract: Many social services assign scarce resources, such as housing assistance or hospital interventions, to people who arrive one at a time: each arrival must receive a decision immediately, and the long-run usage of every resource must stay within its capacity.
By Mohammadsaeed Haghi, Mahdi Salmani, Nima Kelidari
ERRAND is a new method for budgeted maintenance of agent memory that treats revalidation of stored knowledge as a priced errand competing for scarce actions. It uses an errand index that is single‑peaked, allowing certainty in either direction to cost nothing, and repairs by writing new versions rather than deleting old ones. In experiments across two drifting tool‑use worlds, ERRAND outperforms non‑oracle policies, achieving up to 10.0 percentage points improvement over eager revalidation while using only 11.0% of steps, and it self‑terminates when no budget is imposed.
By Beining Wu, Zihao Ding, Jun Huang
arXiv:2512. 22749v2 Announce Type: replace Abstract: We study the pricing behavior of third-party platforms facing strategic agents.
By Rui Ai, David Simchi-Levi, Feng Zhu
The paper discusses how enterprises increasingly deploy AI coding agent harnesses, often purchased from vendors like Anthropic or OpenAI, and how these harnesses dictate model choice, prompt handling, and cost. It introduces a fast, customizable routing system that classifies prompts and strategically routes them to minimize expensive model usage, achieving 14–21% cost savings in a simulated 10,000-seat enterprise. The study also evaluates risks across twenty harnesses, highlights vendor dependence, and proposes an internal control plane for future harness ownership decisions.
By Arian Abbasi, Alan Aqrawi, Ted Kwartler
arXiv:2605. 16064v2 Announce Type: replace-cross Abstract: We study whether simple algorithmic pricing systems can systematically produce collusive-like prices in multi-firm markets.
By Jackie Baek, Vivek F. Farias, Farrell Wu