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Transfer Learning for Contextual Joint Assortment-Pricing under Cross-Market Heterogeneity

Methodology 2026-03-20 v1 Machine Learning

Abstract

We study transfer learning for contextual joint assortment-pricing under a multinomial logit choice model with bandit feedback. A seller operates across multiple related markets and observes only posted prices and realized purchases. While data from source markets can accelerate learning in a target market, cross-market differences in customer preferences may introduce systematic bias if pooled indiscriminately. We model heterogeneity through a structured utility shift, where markets share a common contextual utility structure but differ along a sparse set of latent preference coordinates. Building on this, we develop Transfer Joint Assortment-Pricing (TJAP), a bias-aware framework that combines aggregate-then-debias estimation with a UCB-style policy. TJAP constructs two-radius confidence bounds that separately capture statistical uncertainty and transfer-induced bias, uniformly over continuous prices. We establish matching minimax regret bounds of order O~ ⁣(dT1+H+s0T),\tilde{O}\!\left(d\sqrt{\frac{T}{1+H}} + s_0\sqrt{T}\right),revealing a transparent variance-bias tradeoff: transfer accelerates learning along shared preference directions, while heterogeneous components impose an irreducible adaptation cost. Numerical experiments corroborate the theory, showing that TJAP outperforms both target-only learning and naive pooling while remaining robust to cross-market differences.

Keywords

Cite

@article{arxiv.2603.18114,
  title  = {Transfer Learning for Contextual Joint Assortment-Pricing under Cross-Market Heterogeneity},
  author = {Elynn Chen and Xi Chen and Yi Zhang},
  journal= {arXiv preprint arXiv:2603.18114},
  year   = {2026}
}