Learning Revenue Maximization Using Posted Prices for Stochastic Strategic Patient Buyers

Eitan Hai Mashiah, Idan Attias, Yishay Mansour

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

We consider a seller faced with buyers which have the ability to delay their decision, which we call patience. Each buyer's type is composed of value and patience, and it is sampled i.i.d. from a distribution. The seller, using posted prices, would like to maximize her revenue from selling to the buyer. In this paper, we formalize this setting and characterize the resulting Stackelberg equilibrium, where the seller first commits to her strategy, and then the buyers best respond. Following this, we show how to compute both the optimal pure and mixed strategies. We then consider a learning setting, where the seller does not have access to the distribution over buyer's types. Our main results are the following. We derive a sample complexity bound for the learning of an approximate optimal pure strategy, by computing the fat-shattering dimension of this setting. Moreover, we provide a general sample complexity bound for the approximate optimal mixed strategy. We also consider an online setting and derive a vanishing regret bound with respect to both the optimal pure strategy and the optimal mixed strategy.

Original languageEnglish
Title of host publicationAAAI-23 Technical Tracks 8
EditorsBrian Williams, Yiling Chen, Jennifer Neville
PublisherAAAI press
Pages9090-9098
Number of pages9
ISBN (Electronic)9781577358800
StatePublished - 27 Jun 2023
Event37th AAAI Conference on Artificial Intelligence, AAAI 2023 - Washington, United States
Duration: 7 Feb 202314 Feb 2023

Publication series

NameProceedings of the 37th AAAI Conference on Artificial Intelligence, AAAI 2023
Volume37

Conference

Conference37th AAAI Conference on Artificial Intelligence, AAAI 2023
Country/TerritoryUnited States
CityWashington
Period7/02/2314/02/23

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