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Prediction markets mobilize financial incentives to forecast binary event outcomes through the aggregation of dispersed beliefs and heterogeneous information. Their growing popularity and demonstrated predictive accuracy in political…

General Economics · Economics 2026-01-29 Bridget Smart , Ebba Mark , Anne Bastian , Josefina Waugh

The behavior of users in relatively predictable, both in terms of the data they request and the wireless channels they observe. In this paper, we consider the statistics of such predictable patterns of the demand and channel jointly across…

Information Theory · Computer Science 2018-06-14 L. Srikar Muppirisetty , John Tadrous , Atilla Eryilmaz , Henk Wymeersch

The hierarchical structure of production planning has the advantage of assigning different decision variables to their respective time horizons and therefore ensures their manageability. However, the restrictive structure of this top-down…

Optimization and Control · Mathematics 2018-12-04 Klaus Altendorfer , Thomas Felberbauer , Herbert Jodlbauer

In feature-based dynamic pricing, a seller sets appropriate prices for a sequence of products (described by feature vectors) on the fly by learning from the binary outcomes of previous sales sessions ("Sold" if valuation $\geq$ price, and…

Machine Learning · Computer Science 2022-04-04 Jianyu Xu , Yu-Xiang Wang

We study an online contextual decision-making problem with resource constraints. At each time period, the decision-maker first predicts a reward vector and resource consumption matrix based on a given context vector and then solves a…

Machine Learning · Computer Science 2022-06-16 Heyuan Liu , Paul Grigas

We establish a formal connection between the decades-old surrogate outcome model in biostatistics and economics and the emerging field of prediction-powered inference (PPI). The connection treats predictions from pre-trained models,…

Machine Learning · Statistics 2025-01-17 Wenlong Ji , Lihua Lei , Tijana Zrnic

In this paper, we conduct a systematic large-scale analysis of order book-driven predictability in high-frequency returns by leveraging deep learning techniques. First, we introduce a new and robust representation of the order book, the…

Computational Finance · Quantitative Finance 2023-10-10 Lorenzo Lucchese , Mikko Pakkanen , Almut Veraart

Predictive algorithms inform consequential decisions in settings with selective labels: outcomes are observed only for units selected by past decision makers. This creates an identification problem under unobserved confounding -- when…

Econometrics · Economics 2025-11-07 Ashesh Rambachan , Amanda Coston , Edward Kennedy

Inspired by real-time ad exchanges for online display advertising, we consider the problem of inferring a buyer's value distribution for a good when the buyer is repeatedly interacting with a seller through a posted-price mechanism. We…

Machine Learning · Computer Science 2013-11-28 Kareem Amin , Afshin Rostamizadeh , Umar Syed

We consider a dynamic pricing problem where customer response to the current price is impacted by the customer price expectation, aka reference price. We study a simple and novel reference price mechanism where reference price is the…

Machine Learning · Computer Science 2024-07-23 Shipra Agrawal , Wei Tang

This paper proposes a novel method for demand forecasting in a pricing context. Here, modeling the causal relationship between price as an input variable to demand is crucial because retailers aim to set prices in a (profit) optimal manner…

We study online resource allocation under non-stationary demand with a minimum offline data requirement. In this problem, a decision-maker must allocate multiple types of resources to sequentially arriving queries over a finite horizon.…

Machine Learning · Computer Science 2026-02-23 Yiding Feng , Jiashuo Jiang , Yige Wang

We revisit the sequential variants of linear regression with the squared loss, classification problems with hinge loss, and logistic regression, all characterized by unbounded losses in the setup where no assumptions are made on the…

Machine Learning · Statistics 2025-09-08 Jian Qian , Alexander Rakhlin , Nikita Zhivotovskiy

We consider the problem of bidding in online advertising, where an advertiser aims to maximize value while adhering to budget and Return-on-Spend (RoS) constraints. Unlike prior work that assumes knowledge of the value generated by winning…

Machine Learning · Computer Science 2025-03-06 Sushant Vijayan , Zhe Feng , Swati Padmanabhan , Karthikeyan Shanmugam , Arun Suggala , Di Wang

We consider assortment optimization over a continuous spectrum of products represented by the unit interval, where the seller's problem consists of determining the optimal subset of products to offer to potential customers. To describe the…

Machine Learning · Statistics 2021-04-15 Yannik Peeters , Arnoud V. den Boer , Michel Mandjes

The increasing use of stochastic models for describing complex phenomena warrants surrogate models that capture the reference model characteristics at a fraction of the computational cost, foregoing potentially expensive Monte Carlo…

Machine Learning · Computer Science 2024-06-10 Neil Kichler , Sher Afghan , Uwe Naumann

In many sequential decision problems, an agent performs a repeated task. He then suffers regret and obtains information that he may use in the following rounds. However, sometimes the agent may also obtain information and avoid suffering…

Machine Learning · Computer Science 2025-02-25 Itai Shufaro , Nadav Merlis , Nir Weinberger , Shie Mannor

In societal-scale infrastructures, such as electric grids or transportation networks, pricing mechanisms are often used as a way to shape users' demand in order to lower operating costs and improve reliability. Existing approaches to…

Systems and Control · Electrical Eng. & Systems 2023-08-01 Spencer Hutchinson , Berkay Turan , Mahnoosh Alizadeh

Price determination is a central research topic of revenue management in marketing. The important aspect in pricing is controlling the stochastic behavior of demand, and the previous studies have tackled price optimization problems with…

Optimization and Control · Mathematics 2024-01-04 Yuya Hikima , Akiko Takeda

Resource-constrained systems are prevalent in communications. Such a system is composed of many components but only some of them can be allocated with resources such as time slots. According to the amount of information about the system,…

Information Theory · Computer Science 2014-04-02 Albert Y. S. Lam , Yanhui Geng , Victor O. K. Li