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Alpha signals for statistical arbitrage strategies are often driven by latent factors. This paper analyses how to optimally trade with latent factors that cause prices to jump and diffuse. Moreover, we account for the effect of the trader's…

Mathematical Finance · Quantitative Finance 2018-06-13 Philippe Casgrain , Sebastian Jaimungal

We study contextual dynamic pricing problems where a firm sells products to $T$ sequentially-arriving consumers, behaving according to an unknown demand model. The firm aims to minimize its regret over a clairvoyant that knows the model in…

Machine Learning · Computer Science 2025-04-07 Zifeng Zhao , Feiyu Jiang , Yi Yu

In this work, we investigate online mechanisms for trading time-sensitive valued data. We adopt a continuous function $d(t)$ to represent the data value fluctuation over time $t$. Our objective is to design an \emph{online} mechanism…

Computer Science and Game Theory · Computer Science 2022-10-21 Shuangshuang Xue , Xiang-Yang Li

As artificial intelligence (AI) enters the agentic era, large language models (LLMs) are increasingly deployed as autonomous agents that interact with one another rather than operate in isolation. This shift raises a fundamental question:…

General Economics · Economics 2025-10-09 Yu Liu , Wenwen Li , Yifan Dou , Guangnan Ye

Data is the central commodity of the digital economy. Unlike physical goods, it is non-rival, replicable at near-zero cost, and traded under heterogeneous licensing rules. These properties defy standard supply--demand theory and call for…

Physics and Society · Physics 2025-10-13 Pasquale Casaburi , Giovanni Piccioli , Pierpaolo Vivo

Online reviews provided by consumers are a valuable asset for e-Commerce platforms, influencing potential consumers in making purchasing decisions. However, these reviews are of varying quality, with the useful ones buried deep within a…

Artificial Intelligence · Computer Science 2017-05-09 Subhabrata Mukherjee , Kashyap Popat , Gerhard Weikum

In this work, we are interested on the analysis of competing marketing campaigns between an incumbent who dominates the market and a challenger who wants to enter the market. We are interested in (a) the simultaneous decision of how many…

Social and Information Networks · Computer Science 2015-07-31 Alonso Silva , Antonia Maria Masucci

Dynamic pricing in high-dimensional markets poses fundamental challenges of scalability, uncertainty, and interpretability. Existing low-rank bandit formulations learn efficiently but rely on latent features that obscure how individual…

Artificial Intelligence · Computer Science 2026-02-03 Srividhya Sethuraman , Chandrashekar Lakshminarayanan

To drive purchase in online advertising, it is of the advertiser's great interest to optimize the sequential advertising strategy whose performance and interpretability are both important. The lack of interpretability in existing deep…

Artificial Intelligence · Computer Science 2020-09-04 Zhaoqing Peng , Junqi Jin , Lan Luo , Yaodong Yang , Rui Luo , Jun Wang , Weinan Zhang , Haiyang Xu , Miao Xu , Chuan Yu , Tiejian Luo , Han Li , Jian Xu , Kun Gai

We consider a setting where $n$ buyers, with combinatorial preferences over $m$ items, and a seller, running a priority-based allocation mechanism, repeatedly interact. Our goal, from observing limited information about the results of these…

Computer Science and Game Theory · Computer Science 2014-08-29 Avrim Blum , Yishay Mansour , Jamie Morgenstern

Algorithmic pricing raises a question of interpretation as well as intervention: when autonomous deep-learning pricing systems sustain supracompetitive prices, what strategic pattern have they learned, and how might market institutions…

Theoretical Economics · Economics 2026-05-19 Soumen Banerjee

In this paper, we analyze a natural learning algorithm for uniform pacing of advertising budgets, equipped to adapt to varying ad sale platform conditions. On the demand side, advertisers face a fundamental technical challenge in automating…

Computer Science and Game Theory · Computer Science 2022-11-14 MohammadTaghi Hajiaghayi , Max Springer

Motivated by recent progress on pricing in the AI literature, we study marketplaces that contain multiple vendors offering identical or similar products and unit-demand buyers with different valuations on these vendors. The objective of…

In contextual dynamic pricing, a seller sequentially prices goods based on contextual information. Buyers will purchase products only if the prices are below their valuations. The goal of the seller is to design a pricing strategy that…

Machine Learning · Statistics 2025-02-14 Matilde Tullii , Solenne Gaucher , Nadav Merlis , Vianney Perchet

The opaqueness of modern digital advertising, exemplified by platforms such as Meta Ads, raises concerns regarding their autonomous control over audience targeting, pricing structures, and ad relevancy assessments. Locked in their leading…

Information Retrieval · Computer Science 2025-04-30 Qi Yang , Marlo Ongpin , Sergey Nikolenko , Alfred Huang , Aleksandr Farseev

The problem of searching for experts in a given academic field is hugely important in both industry and academia. We study exactly this issue with respect to a database of authors and their publications. The idea is to use Latent Semantic…

Social and Information Networks · Computer Science 2013-11-26 Charanpal Dhanjal , Stéphan Clémençon

Adapting large language models (LLMs) to specific domains often faces a critical bottleneck: the scarcity of high-quality, human-curated data. While large volumes of unchecked data are readily available, indiscriminately using them for…

Computation and Language · Computer Science 2025-09-09 Jian Wu , Hang Yu , Bingchang Liu , Wenjie Yang , Peng Di , Jianguo Li , Yue Zhang

Latent Dirichlet allocation (LDA) obtains essential information from data by using Bayesian inference. It is applied to knowledge discovery via dimension reducing and clustering in many fields. However, its generalization error had not been…

Machine Learning · Statistics 2021-01-26 Naoki Hayashi

Topic models have emerged as fundamental tools in unsupervised machine learning. Most modern topic modeling algorithms take a probabilistic view and derive inference algorithms based on Latent Dirichlet Allocation (LDA) or its variants. In…

Machine Learning · Computer Science 2016-05-30 Ke Jiang , Suvrit Sra , Brian Kulis

Linear Discriminant Analysis (LDA) is a well-known method for dimensionality reduction and classification. Previous studies have also extended the binary-class case into multi-classes. However, many applications, such as object detection…

Machine Learning · Computer Science 2013-09-24 Gang Chen