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We address the problem of online sequential decision making, i.e., balancing the trade-off between exploiting the current knowledge to maximize immediate performance and exploring the new information to gain long-term benefits using the…

Machine Learning · Computer Science 2022-09-20 Kartik Anand Pant , Amod Hegde , K. V. Srinivas

In this paper we apply active learning algorithms for dynamic pricing in a prominent e-commerce website. Dynamic pricing involves changing the price of items on a regular basis, and uses the feedback from the pricing decisions to update…

Machine Learning · Statistics 2018-02-12 Ravi Ganti , Matyas Sustik , Quoc Tran , Brian Seaman

Machine learning has been used in all kinds of fields. In this article, we introduce how machine learning can be applied into time series problem. Especially, we use the airline ticket prediction problem as our specific problem. Airline…

Machine Learning · Computer Science 2018-02-06 Jun Lu

Demand forecasting is extremely important in revenue management. After all, it is one of the inputs to an optimisation method which aim is to maximize revenue. Most, if not all, forecasting methods use historical data to forecast the…

Optimization and Control · Mathematics 2021-03-16 Daniel Hopman , Ger Koole , Rob van der Mei

As the cornerstone of modern portfolio theory, Markowitz's mean-variance optimization is considered a major model adopted in portfolio management. However, due to the difficulty of estimating its parameters, it cannot be applied to all…

Machine Learning · Computer Science 2019-11-15 Mengying Zhu , Xiaolin Zheng , Yan Wang , Yuyuan Li , Qianqiao Liang

Correctly estimating how demand respond to prices is fundamental for airlines willing to optimize their pricing policy. Under some conditions, these policies, while aiming at maximizing short term revenue, can present too little price…

Machine Learning · Computer Science 2022-03-22 Giovanni Gatti Pinheiro , Michael Defoin-Platel , Jean-Charles Regin

Ancillaries have become a major source of revenue and profitability in the travel industry. Yet, conventional pricing strategies are based on business rules that are poorly optimized and do not respond to changing market conditions. This…

Machine Learning · Statistics 2019-02-07 Naman Shukla , Arinbjörn Kolbeinsson , Ken Otwell , Lavanya Marla , Kartik Yellepeddi

Online decision making plays a crucial role in numerous real-world applications. In many scenarios, the decision is made based on performing a sequence of tests on the incoming data points. However, performing all tests can be expensive and…

Machine Learning · Computer Science 2025-01-30 Arman Rahbar , Niklas Åkerblom , Morteza Haghir Chehreghani

Thompson sampling is an efficient algorithm for sequential decision making, which exploits the posterior uncertainty to address the exploration-exploitation dilemma. There has been significant recent interest in integrating Bayesian neural…

Machine Learning · Statistics 2020-08-07 Zhendong Wang , Mingyuan Zhou

We analyze the problem of using Explore-Exploit techniques to improve precision in multi-result ranking systems such as web search, query autocompletion and news recommendation. Adopting an exploration policy directly online, without…

Machine Learning · Computer Science 2015-04-30 Dragomir Yankov , Pavel Berkhin , Lihong Li

We study the problem of learning shared structure \emph{across} a sequence of dynamic pricing experiments for related products. We consider a practical formulation where the unknown demand parameters for each product come from an unknown…

Machine Learning · Computer Science 2021-01-07 Hamsa Bastani , David Simchi-Levi , Ruihao Zhu

Thompson sampling is an algorithm for online decision problems where actions are taken sequentially in a manner that must balance between exploiting what is known to maximize immediate performance and investing to accumulate new information…

Machine Learning · Computer Science 2020-07-16 Daniel Russo , Benjamin Van Roy , Abbas Kazerouni , Ian Osband , Zheng Wen

We consider settings where an allocation has to be chosen repeatedly, returns are unknown but can be learned, and decisions are subject to constraints. Our model covers two-sided and one-sided matching, even with complex constraints. We…

Econometrics · Economics 2020-11-05 Maximilian Kasy , Alexander Teytelboym

In this work we compare the performance of several machine learning algorithms applied to the problem of modelling air transport demand. Forecasting in the air transport industry is an essential part of planning and managing because of the…

Machine Learning · Computer Science 2021-12-03 Graham Wild , Glenn Baxter , Pannarat Srisaeng , Steven Richardson

Sampling is a fundamental problem in computer science and statistics. However, for a given task and stream, it is often not possible to choose good sampling probabilities in advance. We derive a general framework for adaptively changing the…

Machine Learning · Statistics 2022-06-16 Daniel Ting

In real-world machine learning applications, there is a cost associated with sampling of different features. Budgeted learning can be used to select which feature-values to acquire from each instance in a dataset, such that the best model…

Machine Learning · Computer Science 2019-03-14 Eran Fainman , Bracha Shapira , Lior Rokach , Yisroel Mirsky

Accurate travel products price forecasting is a highly desired feature that allows customers to take informed decisions about purchases, and companies to build and offer attractive tour packages. Thanks to machine learning (ML), it is now…

Applications · Statistics 2021-06-10 Rosa Candela , Pietro Michiardi , Maurizio Filippone , Maria A. Zuluaga

Thompson Sampling is one of the most widely used and studied bandit algorithms, known for its simple structure, low regret performance, and solid theoretical guarantees. Yet, in stark contrast to most other families of bandit algorithms,…

Machine Learning · Computer Science 2026-05-28 Yanlin Qu , Hongseok Namkoong , Assaf Zeevi

Adaptive designs are increasingly used in clinical trials and online experiments to improve participant outcomes by dynamically updating treatment allocation as data accumulate. In practice, experimenters often consider multiple candidate…

Methodology · Statistics 2026-04-08 Wenxin Zhang , Aaron Hudson , Maya Petersen , Mark van der Laan

Thompson sampling has emerged as an effective heuristic for a broad range of online decision problems. In its basic form, the algorithm requires computing and sampling from a posterior distribution over models, which is tractable only for…

Machine Learning · Statistics 2023-04-26 Xiuyuan Lu , Benjamin Van Roy
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