Policy Optimization Using Semi-parametric Models for Dynamic Pricing. (arXiv:2109.06368v2 [cs.LG] UPDATED)

Web: http://arxiv.org/abs/2109.06368

In this paper, we study the contextual dynamic pricing problem where the
market value of a product is linear in its observed features plus some market
noise. Products are sold one at a time, and only a binary response indicating
success or failure of a sale is observed. Our model setting is similar to
Javanmard and Nazerzadeh [2019] except that we expand the demand curve to a
semiparametric model and need to learn dynamically both parametric and
nonparametric components. We …

arxiv models optimization parametric policy pricing