Improved Algorithms for Contextual Dynamic Pricing

Fuente: arXiv
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Auteurs principaux: Tullii, Matilde, Gaucher, Solenne, Merlis, Nadav, Perchet, Vianney
Format: Preprint
Publié: 2024
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author Tullii, Matilde
Gaucher, Solenne
Merlis, Nadav
Perchet, Vianney
author_facet Tullii, Matilde
Gaucher, Solenne
Merlis, Nadav
Perchet, Vianney
contents In contextual dynamic pricing, a seller sequentially prices goods based on contextual information. Buyers will purchase products only if the prices are below their valuations. The goal of the seller is to design a pricing strategy that collects as much revenue as possible. We focus on two different valuation models. The first assumes that valuations linearly depend on the context and are further distorted by noise. Under minor regularity assumptions, our algorithm achieves an optimal regret bound of $\tilde{\mathcal{O}}(T^{2/3})$, improving the existing results. The second model removes the linearity assumption, requiring only that the expected buyer valuation is $β$-Hölder in the context. For this model, our algorithm obtains a regret $\tilde{\mathcal{O}}(T^{d+2β/d+3β})$, where $d$ is the dimension of the context space.
format Preprint
id arxiv_https___arxiv_org_abs_2406_11316
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Improved Algorithms for Contextual Dynamic Pricing
Tullii, Matilde
Gaucher, Solenne
Merlis, Nadav
Perchet, Vianney
Machine Learning
Data Structures and Algorithms
Computer Science and Game Theory
In contextual dynamic pricing, a seller sequentially prices goods based on contextual information. Buyers will purchase products only if the prices are below their valuations. The goal of the seller is to design a pricing strategy that collects as much revenue as possible. We focus on two different valuation models. The first assumes that valuations linearly depend on the context and are further distorted by noise. Under minor regularity assumptions, our algorithm achieves an optimal regret bound of $\tilde{\mathcal{O}}(T^{2/3})$, improving the existing results. The second model removes the linearity assumption, requiring only that the expected buyer valuation is $β$-Hölder in the context. For this model, our algorithm obtains a regret $\tilde{\mathcal{O}}(T^{d+2β/d+3β})$, where $d$ is the dimension of the context space.
title Improved Algorithms for Contextual Dynamic Pricing
topic Machine Learning
Data Structures and Algorithms
Computer Science and Game Theory
url https://arxiv.org/abs/2406.11316