Contextual Dynamic Pricing with Strategic Buyers

arXiv:2307.04055v2 Announce Type: replace-cross
Abstract: Personalized pricing, which involves tailoring prices based on individual characteristics, is commonly used by firms to implement a consumer-specific pricing policy. In this process, buyers can also strategically manipulate their feature data to obtain a lower price, incurring certain manipulation costs. Such strategic behavior can hinder firms from maximizing their profits. In this paper, we study the contextual dynamic pricing problem with strategic buyers. The seller does not observe the buyer's true feature, but a …

abstract arxiv behavior consumer costs cs.ai cs.gt cs.lg data dynamic dynamic pricing feature hinder manipulation personalized policy price pricing process replace stat.ml type