Data-based price discrimination: information theoretic limitations and a minimax optimal strategy. (arXiv:2204.12723v1 [cs.GT])

This paper studies the gap between the classical pricing theory and the
data-based pricing theory. We focus on the problem of price discrimination with
a continuum of buyer types based on a finite sample of observations. Our first
set of results provides sharp lower bounds in the worst-case scenario for the
discrepancy between any data-based pricing strategies and the theoretical
optimal third-degree price discrimination (3PD) strategy (respectively, uniform
pricing strategy) derived from the distribution (where the sample is drawn)
ranging …

arxiv data discrimination information minimax price strategy