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Finding the optimal product prices and product assortment are two fundamental problems in revenue management. Usually, a seller needs to jointly determine the prices and assortment while managing a network of resources with limited…

Optimization and Control · Mathematics 2022-04-12 Anton J. Kleywegt , Hongzhang Shao

We revisit the classic Cournot model and extend it to a two-echelon supply chain with an upstream supplier who operates under demand uncertainty and multiple downstream retailers who compete over quantity. The supplier's belief about retail…

Computer Science and Game Theory · Computer Science 2021-07-19 Constandina Koki , Stefanos Leonardos , Costis Melolidakis

Given data on the choices made by consumers for different offer sets, a key challenge is to develop parsimonious models that describe and predict consumer choice behavior while being amenable to prescriptive tasks such as pricing and…

Machine Learning · Statistics 2025-04-15 Yanqiu Ruan , Xiaobo Li , Karthyek Murthy , Karthik Natarajan

Price differentiation is a common strategy in many markets. In this paper, we study a static multiproduct price optimization problem with demand given by a discrete mixed multinomial logit model. By considering a mixed logit model that…

Optimization and Control · Mathematics 2023-04-05 Ahmadreza Marandi , Virginie Lurkin

This paper introduces a simple efficient learning algorithms for general sequential decision making. The algorithm combines Optimism for exploration with Maximum Likelihood Estimation for model estimation, which is thus named OMLE. We prove…

Machine Learning · Computer Science 2022-11-24 Qinghua Liu , Praneeth Netrapalli , Csaba Szepesvári , Chi Jin

The emergence of a variety of Machine Learning (ML) approaches for travel mode choice prediction poses an interesting question to transport modellers: which models should be used for which applications? The answer to this question goes…

Assortment optimization is a fundamental challenge in modern retail and recommendation systems, where the goal is to select a subset of products that maximizes expected revenue under complex customer choice behaviors. While recent advances…

Machine Learning · Statistics 2026-03-11 Miao Lu , Yuxuan Han , Han Zhong , Zhengyuan Zhou , Jose Blanchet

In this paper, we investigate the capacitated assortment optimization problem with pricing under the paired combinatorial logit model, whose goal is to identify the revenue-maximizing subset of products as well as their selling prices…

Optimization and Control · Mathematics 2018-10-24 Daihan Zhang , Zhenghe Zhong , Chuning Gao , Rui Chen

The growth of e-commerce has created increasing complexity in logistics services. To remain competitive, logistics and e-commerce companies are exploring new modes as supplements to traditional home delivery, one of which is the…

Optimization and Control · Mathematics 2021-08-27 Yun Hui Lin , Yuan Wang , Loo Hay Lee , Ek Peng Chew

In this paper, we propose an extension to the multinomial logit (MNL) model, the Halo MNL, that takes into account the interaction effects among products in an assortment. In particular, this model incorporates pairwise interactions of…

Applications · Statistics 2018-05-07 Reza Yousefi Maragheh , Alexandra Chronopoulou , James Mario Davis

This paper develops nonparametric estimation for discrete choice models based on the mixed multinomial logit (MMNL) model. It has been shown that MMNL models encompass all discrete choice models derived under the assumption of random…

Statistics Theory · Mathematics 2011-02-25 Pierpaolo De Blasi , Lancelot F. James , John W. Lau

In this paper, we revisit parameter estimation for multinomial logit (MNL), nested logit (NL), and tree-nested logit (TNL) models through the framework of convex conic optimization. Traditional approaches typically solve the maximum…

Econometrics · Economics 2025-09-03 Hoang Giang Pham , Tien Mai , Minh Ha Hoang

We consider a dynamic pricing problem in network revenue management where customer behavior is predicted by a choice model, i.e., the multinomial logit (MNL) model. The problem, even in the static setting (i.e., customer demand remains…

Optimization and Control · Mathematics 2025-01-06 Qian Shao , Tien Mai , Shih-Fen Cheng

Finding the optimal (revenue-maximizing) mechanism to sell multiple items has been a prominent and notoriously difficult open problem. Existing work has mainly focused on deriving analytical results tailored to a particular class of…

Theoretical Economics · Economics 2026-01-09 Kento Hashimoto , Keita Kuwahara , Reo Nonaka

Rankings are a type of preference elicitation that arise in experiments where assessors arrange items, for example, in decreasing order of utility. Orderings of n items labelled {1,...,n} denoted are permutations that reflect strict…

Methodology · Statistics 2024-03-20 Luiza S. C. Piancastelli , Nial Friel

We study the problem of finding the optimal assortment that maximizes expected revenue under the decision forest model, a recently proposed nonparametric choice model that is capable of representing any discrete choice model and in…

Optimization and Control · Mathematics 2025-12-17 Yi-Chun Akchen , Velibor V. Mišić

A fundamental problem in revenue management is to optimally choose the attributes of products, such that the total profit or revenue or market share is maximized. Usually, these attributes can affect both a product's market share…

Optimization and Control · Mathematics 2021-12-24 Hongzhang Shao , Anton J. Kleywegt

Many important resource allocation problems involve the combinatorial assignment of items, e.g., auctions or course allocation. Because the bundle space grows exponentially in the number of items, preference elicitation is a key challenge…

Computer Science and Game Theory · Computer Science 2023-03-14 Jakob Weissteiner , Jakob Heiss , Julien Siems , Sven Seuken

We consider the problem of multi-product dynamic pricing, in a contextual setting, for a seller of differentiated products. In this environment, the customers arrive over time and products are described by high-dimensional feature vectors.…

Machine Learning · Statistics 2020-05-19 Adel Javanmard , Hamid Nazerzadeh , Simeng Shao

In applications such as recommendation systems and revenue management, it is important to predict preferences on items that have not been seen by a user or predict outcomes of comparisons among those that have never been compared. A popular…

Machine Learning · Computer Science 2015-06-29 Sewoong Oh , Kiran K. Thekumparampil , Jiaming Xu
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