Risk-Reward Models for Two-option Online Leasing Problem

In this paper, we use a competitive strategy to analyze the two-option online leasing problem under a sharing economy. To make the model more realistic, we utilize the decision-maker's risk tolerance and duration forecasting to build two risk-reward models. The optimal risk-reward strategy for two expected probabilities of the two-option online leasing problem under a sharing economy is presented and the optimal decision time is determined. Numerical examples show that the competitive performance is significantly improved in the two risk-reward models.