Jointly Learning Prices and Product Features
Jointly Learning Prices and Product Features
Ehsan Emamjomeh-Zadeh, Renato Paes Leme, Jon Schneider, Balasubramanian Sivan
Proceedings of the Thirtieth International Joint Conference on Artificial Intelligence
Main Track. Pages 2360-2366.
https://doi.org/10.24963/ijcai.2021/325
Product Design is an important problem in marketing research where a firm tries
to learn what features of a product are more valuable to consumers. We study
this problem from the viewpoint of online learning: a firm repeatedly interacts
with a buyer by choosing a product configuration as well as a price and
observing the buyer's purchasing decision. The goal of the firm is to maximize
revenue throughout the course of $T$ rounds by
learning the buyer's preferences.
We study both the case of a set of discrete products and the case of a continuous set of
allowable product features. In both cases we provide nearly tight
upper and lower regret bounds.
Keywords:
Machine Learning: Online Learning
Agent-based and Multi-agent Systems: Economic Paradigms, Auctions and Market-Based Systems