Risk Reward Analysis of Online Simplified Bahncard Problem with Interest Rate

The Bahncard problem can be viewed as a generalization of the Ski-Rental problem. The simplified Bahncard problem is the special case that the Bahncard never expires. When considering alternative financial transaction one must consider their net present value. Thus, accounting for the interest rate is an essential feature of any reasonable financial model. In this paper, both the interest rate factor and risk management are introduced to this special case, the introduction of these parameters considerably improve the performance measure of competitive analysis.