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We study a sequential profit-maximization problem, optimizing for both price and ancillary variables like marketing expenditures. Specifically, we aim to maximize profit over an arbitrary sequence of multiple demand curves, each dependent…

Machine Learning · Computer Science 2024-07-09 Joon Suk Huh , Ellen Vitercik , Kirthevasan Kandasamy

We study a classic Bayesian mechanism design setting of monopoly problem for an additive buyer in the presence of budgets. In this setting a monopolist seller with $m$ heterogeneous items faces a single buyer and seeks to maximize her…

Computer Science and Game Theory · Computer Science 2018-10-09 Yu Cheng , Nick Gravin , Kamesh Munagala , Kangning Wang

We study the interplay of fairness, welfare, and equity considerations in personalized pricing based on customer features. Sellers are increasingly able to conduct price personalization based on predictive modeling of demand conditional on…

Machine Learning · Computer Science 2020-12-29 Nathan Kallus , Angela Zhou

We study envy-free pricing mechanisms in matching markets with $m$ items and $n$ budget constrained buyers. Each buyer is interested in a subset of the items on sale, and she appraises at some single-value every item in her preference-set.…

Computer Science and Game Theory · Computer Science 2016-10-31 Riccardo Colini-Baldeschi , Stefano Leonardi , Qiang Zhang

We study the problem of dynamic assortment personalization with large, heterogeneous populations and wide arrays of products, and demonstrate the importance of structural priors for effective, efficient large-scale personalization.…

Machine Learning · Statistics 2019-05-03 Nathan Kallus , Madeleine Udell

We consider a periodical equilibrium pricing problem for multiple firms over a planning horizon of T periods. At each period, firms set their selling prices and receive stochastic demand from consumers. Firms do not know their underlying…

Computer Science and Game Theory · Computer Science 2024-06-07 Yongge Yang , Yu-Ching Lee , Po-An Chen

Assortment optimization refers to the problem of designing a slate of products to offer potential customers, such as stocking the shelves in a convenience store. The price of each product is fixed in advance, and a probabilistic choice…

Computer Science and Game Theory · Computer Science 2017-11-09 Nicole Immorlica , Brendan Lucier , Jieming Mao , Vasilis Syrgkanis , Christos Tzamos

Multi-item mechanisms can be very complex offering many different bundles to the buyer that could even be randomized. Such complexity is thought to be necessary as the revenue gaps between randomized and deterministic mechanisms, or…

Computer Science and Game Theory · Computer Science 2019-07-03 Shuchi Chawla , Yifeng Teng , Christos Tzamos

A monopolist wishes to maximize her profits by finding an optimal price policy. After she announces a menu of products and prices, each agent $x$ will choose to buy that product $y(x)$ which maximizes his own utility, if positive. The…

Optimization and Control · Mathematics 2021-02-12 Robert J. McCann , Kelvin Shuangjian Zhang

The Rashomon effect describes the observation that in machine learning (ML) multiple models often achieve similar predictive performance while explaining the underlying relationships in different ways. This observation holds even for…

Machine Learning · Computer Science 2025-05-13 Julian Rosenberger , Philipp Schröppel , Sven Kruschel , Mathias Kraus , Patrick Zschech , Maximilian Förster

In the context of nonlinear prices, the empirical evidence suggests that the consumers have cognitive biases represented in a limited understanding of nonlinear price structures, and they respond to some alternative perceptions of the…

General Economics · Economics 2021-04-22 Diego Alejandro Murillo Taborda

The holy grail of LLM personalization is a single LLM for each user, perfectly aligned with that user's preferences. However, maintaining a separate LLM per user is impractical due to constraints on compute, memory, and system complexity.…

Computation and Language · Computer Science 2026-04-13 Cheol Woo Kim , Jai Moondra , Roozbeh Nahavandi , Andrew Perrault , Milind Tambe , Swati Gupta

We study the propensity of independent algorithms to collude in repeated Cournot duopoly games. Specifically, we investigate the predictive power of different oligopoly and bargaining solutions regarding the effect of asymmetry between…

General Economics · Economics 2025-01-14 Simon Martin , Hans-Theo Normann , Paul Püplichhuisen , Tobias Werner

In the multi-unit pricing problem, multiple units of a single item are for sale. A buyer's valuation for $n$ units of the item is $v \min \{ n, d\} $, where the per unit valuation $v$ and the capacity $d$ are private information of the…

Computer Science and Game Theory · Computer Science 2017-04-18 Nikhil R. Devanur , Nima Haghpanah , Christos-Alexandros Psomas

In markets where customers tend to purchase baskets of products rather than single products, assortment optimization is a major challenge for retailers. Removing a product from a retailer's assortment can result in a severe drop in…

Optimization and Control · Mathematics 2025-11-18 Andrey Vasilyev , Sebastian Maier , Ralf W. Seifert

We study the problem of multi-dimensional revenue maximization when selling $m$ items to a buyer that has additive valuations for them, drawn from a (possibly correlated) prior distribution. Unlike traditional Bayesian auction design, we…

Computer Science and Game Theory · Computer Science 2022-04-29 Yiannis Giannakopoulos , Diogo Poças , Alexandros Tsigonias-Dimitriadis

It can be profitable for vehicle service providers to set service prices based on users' travel demand on different origin-destination pairs. The prior studies on the spatial pricing of vehicle service rely on the assumption that providers…

Computer Science and Game Theory · Computer Science 2020-07-08 Haoran Yu , Ermin Wei , Randall A. Berry

We consider a feature-based personalized pricing problem in which the buyer is strategic: given the seller's pricing policy, the buyer can augment the features that they reveal to the seller to obtain a low price for the product. We model…

Optimization and Control · Mathematics 2024-08-19 Zhi Chen , Bradley Sturt , Weijun Xie

We consider the dynamic assortment optimization problem under the multinomial logit model (MNL) with unknown utility parameters. The main question investigated in this paper is model mis-specification under the $\varepsilon$-contamination…

Machine Learning · Statistics 2022-07-12 Xi Chen , Akshay Krishnamurthy , Yining Wang

A firm that sells a non perishable product considers intertemporal price discrimination in the objective of maximizing its long-run average revenue. We consider a general model of patient customers with changing valuations. Arriving…

Optimization and Control · Mathematics 2020-02-17 Araman Victor , Fayad Bassam