English

Integrable Elasticity via Neural Demand Potentials

Machine Learning 2026-05-22 v1

Abstract

We propose the Integrable Context-Dependent Demand Network (ICDN), a demand-first neural model for multiproduct retail demand. The model learns log-demand as a smooth, context-conditioned function of log-prices, allowing elasticities to be derived exactly from the learned demand surface. On the Dominick's beer dataset, ICDN improves out-of-sample generalization over a directed log-log benchmark and yields more stable, economically plausible elasticity estimates, especially for weakly identified cross-price effects.

Cite

@article{arxiv.2605.22820,
  title  = {Integrable Elasticity via Neural Demand Potentials},
  author = {Carlos Heredia and Daniel Roncel},
  journal= {arXiv preprint arXiv:2605.22820},
  year   = {2026}
}

Comments

44 pages, 7 figures

R2 v1 2026-07-22T07:26:52.823Z