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Changhyun Kwon

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3 published item(s)

preprint2026arXiv

Rethinking Positional Encoding for Neural Vehicle Routing

Transformer-based models have become the dominant paradigm for neural combinatorial optimization (NCO) of vehicle routing problems (VRPs), yet the role of positional encoding (PE) in these architectures remains largely unexplored. Unlike natural language, where tokens are uniformly spaced on a line, routing solutions exhibit several properties that render standard NLP positional encodings inadequate. In this work, we formalize three such structural properties that a routing-aware PE should respect, namely anisometric node distances, cyclic and direction-aware topology, and hierarchical depot-anchored global multi-route structure, combining them with a unifying design principle of geometric grounding. Guided by these criteria, we analyze and compare PE methods spanning NLP, graph-transformer, and routing-specific families, and propose a hierarchical anisometric PE that combines a distance-indexed, circularly consistent in-route encoding with a depot-anchored angular cross-route encoding. Extensive experiments across diverse VRP variants demonstrate that geometry-grounded PE consistently outperforms index-based alternatives, with gains that transfer across problem variants, model architectures, and distribution shifts.

preprint2012arXiv

Competitive Robust Dynamic Pricing in Continuous Time with Fixed Inventories

The problem of robust dynamic pricing of an abstract commodity, whose inventory is specified at an initial time but never subsequently replenished, originally studied by Perakis and Sood (2006) in discrete time, is considered from the perspective of continuous time. We use a multiplicative demand function to model the uncertain demand, and develop a robust counterpart to replace the uncertain demand constraint. The sellers' robust best response problem yields a generalized Nash equilibrium problem, which can be formulated as an equivalent, continuous-time quasi-variational inequality. We demonstrate that, for appropriate regularity conditions, a generalized robust Nash equilibrium exists. We show that the quasi-variational inequality may be replaced by an equivalent variational inequality, and use a fixed-point algorithm to solve the variational inequality. We also demonstrate how explicit time lags associated with price updating in real-world decision environments, as well as specific pricing decision rules, may be introduced to create a dual time scale formulation and the associated solutions computed. We illustrate, via numerical examples, how robust pricing based on our DPFI formulation offers generally superior and never inferior worst case performance compared to nominal pricing.