Optimal pricing using online auction experiments: A P\'olya tree approach

We show how a retailer can estimate the optimal price of a new product using observed transaction prices from online second-price auction experiments. For this purpose we propose a Bayesian P\'olya tree approach which, given the limited nature of the data, requires a specially tailored implementation. Avoiding the need for a priori parametric assumptions, the P\'olya tree approach allows for flexible inference of the valuation distribution, leading to more robust estimation of optimal price than competing parametric approaches. In collaboration with an online jewelry retailer, we illustrate how our methodology can be combined with managerial prior knowledge to estimate the profit maximizing price of a new jewelry product.Comment: Published in at http://dx.doi.org/10.1214/11-AOAS503 the Annals of Applied Statistics (http://www.imstat.org/aoas/) by the Institute of Mathematical Statistics (http://www.imstat.org

Second-harmonic generation in graded metallic films

We study the effective second-harmonic generation (SHG) susceptibility in graded metallic films by invoking the local field effects exactly, and further numerically demonstrate that the graded metallic films can serve as a novel optical material for producing a broad structure in both the linear and SHG response and an enhancement in the SHG signal.Comment: 10 pages, 2 EPS figures. Minor revision