Bandit Profit-maximization for Targeted Marketing

arXiv:2403.01361v1 Announce Type: new
Abstract: We study a sequential profit-maximization problem, optimizing for both price and ancillary variables like marketing expenditures. Specifically, we aim to maximize profit over an arbitrary sequence of multiple demand curves, each dependent on a distinct ancillary variable, but sharing the same price. A prototypical example is targeted marketing, where a firm (seller) wishes to sell a product over multiple markets. The firm may invest different marketing expenditures for different markets to optimize customer acquisition, but …

abstract aim arxiv cs.gt cs.lg demand econ.gn example marketing multiple price profit q-fin.ec q-fin.gn study type variables