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Personalized pricing, which involves tailoring prices based on individual characteristics, is commonly used by firms to implement a consumer-specific pricing policy. In this process, buyers can also strategically manipulate their feature…

Machine Learning · Statistics 2024-06-27 Pangpang Liu , Zhuoran Yang , Zhaoran Wang , Will Wei Sun

The emergence of price comparison websites (PCWs) has presented insurers with unique challenges in formulating effective pricing strategies. Operating on PCWs requires insurers to strike a delicate balance between competitive premiums and…

Pricing of Securities · Quantitative Finance 2023-08-15 Tanut Treetanthiploet , Yufei Zhang , Lukasz Szpruch , Isaac Bowers-Barnard , Henrietta Ridley , James Hickey , Chris Pearce

Price discrimination, which refers to the strategy of setting different prices for different customer groups, has been widely used in online retailing. Although it helps boost the collected revenue for online retailers, it might create…

Machine Learning · Computer Science 2023-07-31 Xi Chen , Jiameng Lyu , Xuan Zhang , Yuan Zhou

Firms engaged in electronic commerce increasingly rely on predictive analytics via machine-learning algorithms to drive a wide array of managerial decisions. The tuning of many standard machine learning algorithms can be understood as…

Computer Science and Game Theory · Computer Science 2022-02-25 Yiding Feng , Ronen Gradwohl , Jason Hartline , Aleck Johnsen , Denis Nekipelov

This paper examines how data inputs shape competition among artificial intelligences (AIs) in pricing games. The dataset assigns labels to consumers and divides them into different markets, thereby inducing multimarket contact among AIs. We…

General Economics · Economics 2025-12-30 Zhang Xu , Mingsheng Zhang , Wei Zhao

We consider the problem of estimating assortment probabilities, which is common in operations management applications, including product bundling, advertising, etc. Existing approaches typically model each assortment as a category and apply…

Statistics Theory · Mathematics 2026-03-23 Alexandre Belloni , Yan Chen , Matthew Harding

This paper introduces a novel contextual bandit algorithm for personalized pricing under utility fairness constraints in scenarios with uncertain demand, achieving an optimal regret upper bound. Our approach, which incorporates dynamic…

Machine Learning · Statistics 2023-11-29 Xi Chen , David Simchi-Levi , Yining Wang

Recent advances in Machine Learning (ML) and Artificial Intelligence (AI) follow a familiar structure: A firm releases a large, pretrained model. It is designed to be adapted and tweaked by other entities to perform particular,…

Computer Science and Game Theory · Computer Science 2025-01-03 Benjamin Laufer , Jon Kleinberg , Hoda Heidari

Recommender systems are gaining increasing and critical impacts on human and society since a growing number of users use them for information seeking and decision making. Therefore, it is crucial to address the potential unfairness problems…

Information Retrieval · Computer Science 2021-11-08 Yunqi Li , Hanxiong Chen , Shuyuan Xu , Yingqiang Ge , Yongfeng Zhang

Strategic classification studies learning in settings where self-interested users can strategically modify their features to obtain favorable predictive outcomes. A key working assumption, however, is that "favorable" always means…

Machine Learning · Computer Science 2022-06-22 Sagi Levanon , Nir Rosenfeld

With the rise of the digital economy and an explosion of available information about consumers, effective personalization of goods and services has become a core business focus for companies to improve revenues and maintain a competitive…

Machine Learning · Computer Science 2022-11-04 Zhaonan Qu , Isabella Qian , Zhengyuan Zhou

Traditional pricing paradigms, once dominated by static models and rule-based heuristics, are increasingly being replaced by dynamic, data-driven approaches powered by machine learning algorithms. Despite their growing sophistication, most…

Machine Learning · Computer Science 2025-12-01 Marco Mussi , Marcello Restelli

Conventional automated decision-support systems often prioritize predictive accuracy, overlooking the complexities of real-world settings where stakeholders' preferences may diverge or conflict. This can lead to outcomes that disadvantage…

Machine Learning · Computer Science 2025-11-25 Vittoria Vineis , Giuseppe Perelli , Gabriele Tolomei

Most of the research in the recommender systems domain is focused on the optimization of the metrics based on historical data such as Mean Average Precision (MAP) or Recall. However, there is a gap between the research and industry since…

Information Retrieval · Computer Science 2022-03-24 Michal Kompan , Peter Gaspar , Jakub Macina , Matus Cimerman , Maria Bielikova

Motivated by a growing market that involves buying and selling data over the web, we study pricing schemes that assign value to queries issued over a database. Previous work studied pricing mechanisms that compute the price of a query by…

Databases · Computer Science 2016-07-01 Shaleen Deep , Paraschos Koutris

Internet market makers are always facing intense competitive environment, where personalized price reductions or discounted coupons are provided for attracting more customers. Participants in such a price war scenario have to invest a lot…

Artificial Intelligence · Computer Science 2018-08-24 Chenchen Li , Xiang Yan , Xiaotie Deng , Yuan Qi , Wei Chu , Le Song , Junlong Qiao , Jianshan He , Junwu Xiong

The $\textit{data market design}$ problem is a problem in economic theory to find a set of signaling schemes (statistical experiments) to maximize expected revenue to the information seller, where each experiment reveals some of the…

Computer Science and Game Theory · Computer Science 2023-11-01 Sai Srivatsa Ravindranath , Yanchen Jiang , David C. Parkes

Pricing based on individual customer characteristics is widely used to maximize sellers' revenues. This work studies offline personalized pricing under endogeneity using an instrumental variable approach. Standard instrumental variable…

Methodology · Statistics 2023-02-27 Rui Miao , Zhengling Qi , Cong Shi , Lin Lin

Machine learning models play a key role for service providers looking to gain market share in consumer markets. However, traditional learning approaches do not take into account the existence of additional providers, who compete with each…

Machine Learning · Computer Science 2025-08-15 Ohad Einav , Nir Rosenfeld

In continuous-choice settings, consumers decide not only on whether to purchase a product, but also on how much to purchase. Thus, firms optimize a full price schedule rather than a single price point. This paper provides a methodology to…

General Economics · Economics 2024-08-13 Soheil Ghili , Russ Yoon