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Personalized pricing analytics is becoming an essential tool in retailing. Upon observing the personalized information of each arriving customer, the firm needs to set a price accordingly based on the covariates such as income, education…

Machine Learning · Computer Science 2020-02-18 Ningyuan Chen , Guillermo Gallego

Many payment platforms hold large-scale marketing campaigns, which allocate incentives to encourage users to pay through their applications. To maximize the return on investment, incentive allocations are commonly solved in a two-stage…

Machine Learning · Computer Science 2022-01-03 Xuanying Chen , Zhining Liu , Li Yu , Sen Li , Lihong Gu , Xiaodong Zeng , Yize Tan , Jinjie Gu

Personalized recommendations form an important part of today's internet ecosystem, helping artists and creators to reach interested users, and helping users to discover new and engaging content. However, many users today are skeptical of…

Cryptography and Security · Computer Science 2024-01-09 Allegra Laro , Yanqing Chen , Hao He , Babak Aghazadeh

We study the problem of online learning in competitive settings in the context of two-sided matching markets. In particular, one side of the market, the agents, must learn about their preferences over the other side, the firms, through…

Artificial Intelligence · Computer Science 2022-06-07 Chinmay Maheshwari , Eric Mazumdar , Shankar Sastry

In this study, we apply reinforcement learning techniques and propose what we call reinforcement mechanism design to tackle the dynamic pricing problem in sponsored search auctions. In contrast to previous game-theoretical approaches that…

Computer Science and Game Theory · Computer Science 2017-11-29 Weiran Shen , Binghui Peng , Hanpeng Liu , Michael Zhang , Ruohan Qian , Yan Hong , Zhi Guo , Zongyao Ding , Pengjun Lu , Pingzhong Tang

Motivated by the dynamic assortment offerings and item pricings occurring in e-commerce, we study a general problem of allocating finite inventories to heterogeneous customers arriving sequentially. We analyze this problem under the…

Data Structures and Algorithms · Computer Science 2019-05-14 Will Ma , David Simchi-Levi

In the online (time-series) search problem, a player is presented with a sequence of prices which are revealed in an online manner. In the standard definition of the problem, for each revealed price, the player must decide irrevocably…

Data Structures and Algorithms · Computer Science 2021-12-06 Spyros Angelopoulos , Shahin Kamali , Dehou Zhang

Given a batch of human computation tasks, a commonly ignored aspect is how the price (i.e., the reward paid to human workers) of these tasks must be set or varied in order to meet latency or cost constraints. Often, the price is set…

Computer Science and Game Theory · Computer Science 2014-08-28 Yihan Gao , Aditya Parameswaran

The adoption of automated, data-driven decision making in an ever expanding range of applications has raised concerns about its potential unfairness towards certain social groups. In this context, a number of recent studies have focused on…

Information sharing among organizations has been gaining attention as a method for improving cybersecurity. However, the associated disclosure costs act as deterrents for firms' voluntary cooperation. In this work, we take a game-theoretic…

Computer Science and Game Theory · Computer Science 2020-01-20 Parinaz Naghizadeh , Mingyan Liu

We study how loyalty behavior of customers and differing costs to produce undifferentiated products by firms can influence market outcomes. In prior works that study such markets, firm costs have generally been assumed negligible or equal,…

Theoretical Economics · Economics 2022-01-25 Theja Tulabandhula , Aris Ouksel , Son Nguyen

Prediction-oriented machine learning is becoming increasingly valuable to organizations, as it may drive applications in crucial business areas. However, decision-makers from companies across various industries are still largely reluctant…

Software Engineering · Computer Science 2023-06-22 Giacomo Welsch , Peter Kowalczyk

We present a new approach to the problems of evaluating and learning personalized decision policies from observational data of past contexts, decisions, and outcomes. Only the outcome of the enacted decision is available and the historical…

Machine Learning · Statistics 2019-06-04 Nathan Kallus

Technology trends as digitalization and Industry 4.0 initiate a growing demand for new business models. Most of this models requires a fundamental shift of operational and financial risks between seller and buyer. A key question is…

Mathematical Finance · Quantitative Finance 2022-12-20 Roger Knecktys , Henrik Bette , Rüdiger Kiesel , Thomas Guhr

Model-based process simulation can be used to derive designs and operating conditions of chemical processes that optimally balance multiple objectives, such as quality, costs, or environmental impacts. This work focuses on identifying…

Deep hedging is a deep-learning-based framework for derivative hedging in incomplete markets. The advantage of deep hedging lies in its ability to handle various realistic market conditions, such as market frictions, which are challenging…

Computational Finance · Quantitative Finance 2023-07-26 Masanori Hirano , Kentaro Minami , Kentaro Imajo

Deploying machine learning models in production may allow adversaries to infer sensitive information about training data. There is a vast literature analyzing different types of inference risks, ranging from membership inference to…

As algorithms increasingly mediate competitive decision-making, their influence extends beyond individual outcomes to shaping strategic market dynamics. In two preregistered experiments, we examined how algorithmic advice affects human…

Human-Computer Interaction · Computer Science 2025-11-13 Tobias R. Rebholz , Maxwell Uphoff , Christian H. R. Bernges , Florian Scholten

When online sellers use AI learning algorithms to automatically compete on e-commerce platforms, there is concern that they will learn to coordinate on higher than competitive prices. However, this concern was primarily raised in…

General Economics · Economics 2025-11-03 Hangcheng Zhao , Ron Berman

We develop a location analysis spatial model of firms' competition in multi-characteristics space, where consumers' opinions about the firms' products are distributed on multilayered networks. Firms do not compete on price but only on…

Physics and Society · Physics 2017-08-03 Antonios Garas , Athanasios Lapatinas
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