We consider a novel dynamic pricing and learning setting where in addition to setting prices of products in sequential rounds, the seller also ex-ante commits to'advertising schemes'. That is, in the beginning of each round the seller can decide what kind of signal they will provide to the buyer about the product's quality upon realization. Using the popular Bayesian persuasion framework to model the effect of these signals on the buyers' valuation and purchase responses, we formulate the problem of finding an optimal design of the advertising scheme along with a pricing scheme that maximizes the seller's expected revenue. Without any apriori knowledge of the buyers' demand function, our goal is to design an online algorithm that can use past purchase responses to adaptively learn the optimal pricing and advertising strategy. We study the regret of the algorithm when compared to the optimal clairvoyant price and advertising scheme.

Optimal auction design is a fundamental problem in algorithmic game theory.

Mechanism design is a high-impact branch of economics and computer science that studies the implementation of socially desirable outcomes among strategic self-interested agents. Major real-world use cases include combinatorial auctions ( e.g., strategic sourcing, radio spectrum auctions),

Anthropic has forecast reducing its cash burn to roughly a third of revenue in 2026 and just 9% by 2027, with a break-even target of 2028. Anthropic has forecast reducing its cash burn to roughly a third of revenue in 2026 and just 9% by 2027, with a break-even target of 2028. The artificial intelligence company Anthropic said on Thursday it raised $30bn in its latest funding round that values the Claude maker and OpenAI rival at $380bn, underscoring the breakneck pace of AI investments. The round, led by the Singapore sovereign wealth fund GIC and hedge fund Coatue Management, is among the largest private fundraising deals on record and comes just five months after Anthropic closed its previous round at a $183bn valuation - meaning the company has more than doubled in value since September. "Anthropic is the clear category leader in enterprise AI," said Choo Yong Cheen, chief investment officer of private equity at GIC. Anthropic said its annualized revenue had reached $14bn, having grown more than tenfold in each of the past three years.

Since the provider's goal of maximizing revenue can only be achieved

Sales of the iPhone hit an all-time high in the final three months of last year, tech firm Apple reported on Thursday. Revenue rose by 16% compared to the same period last year to $144bn (£82.5bn) - the strongest growth since 2021 - thanks to a jump in sales in China, as well as Europe, the Americas, and Japan. However, sales in other parts of the company were less positive. Wearables and accessories, which include things like the Apple Watch and AirPods, fell by roughly 3%. Apple chief executive Tim Cook said the iPhone's boost in sales meant the firm was in supply chase mode.

Meta wowed Wall Street with improvements in ad targeting fueled by AI alongside huge investment. Big tech earnings so far this week have sent a clear warning: investors are willing to overlook soaring spending on artificial intelligence if it fuels strong growth, but are quick to punish companies that fall short. The contrast was clear in Thursday's stock market reaction to earnings from Microsoft and Meta, highlighting how dramatically the stakes have changed since the launch of ChatGPT started the AI boom more than three years ago. Shares of the Instagram parent surged more than 9% on strong sales, while those of Microsoft slumped 10% after its cloud business failed to impress. "The market appears to be questioning whether these massive capital expenditure hikes will generate sufficient returns," said Jesse Cohen, senior analyst at Investing.com.