We examine the effect of the presence of knowledgeable buyers (experts) in online markets where auctions with a hard close and posted prices are widely used. We model buyer expertise as the ability to accurately predict the quality, or condition, of an item. In auctions with a hard close,...

We consider the Unimodal Multi-Armed Bandit problem where the goal is to find the optimal price under an unknown unimodal reward function, with an additional "markdown" constraint that requires that the price exploration is non-increasing. This markdown optimization problem faithfully models a...