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Dynamic Assortment Selection and Pricing with Censored Preference Feedback

Kim, Jung-hun, Oh, Min-hwan

arXiv.org Machine Learning

In this study, we investigate the problem of dynamic multi-product selection and pricing by introducing a novel framework based on a \textit{censored multinomial logit} (C-MNL) choice model. In this model, sellers present a set of products with prices, and buyers filter out products priced above their valuation, purchasing at most one product from the remaining options based on their preferences. The goal is to maximize seller revenue by dynamically adjusting product offerings and prices, while learning both product valuations and buyer preferences through purchase feedback. To achieve this, we propose a Lower Confidence Bound (LCB) pricing strategy. By combining this pricing strategy with either an Upper Confidence Bound (UCB) or Thompson Sampling (TS) product selection approach, our algorithms achieve regret bounds of $\tilde{O}(d^{\frac{3}{2}}\sqrt{T/\kappa})$ and $\tilde{O}(d^{2}\sqrt{T/\kappa})$, respectively. Finally, we validate the performance of our methods through simulations, demonstrating their effectiveness.


Causally Abstracted Multi-armed Bandits

Zennaro, Fabio Massimo, Bishop, Nicholas, Dyer, Joel, Felekis, Yorgos, Calinescu, Anisoara, Wooldridge, Michael, Damoulas, Theodoros

arXiv.org Artificial Intelligence

Multi-armed bandits (MAB) and causal MABs (CMAB) are established frameworks for decision-making problems. The majority of prior work typically studies and solves individual MAB and CMAB in isolation for a given problem and associated data. However, decision-makers are often faced with multiple related problems and multi-scale observations where joint formulations are needed in order to efficiently exploit the problem structures and data dependencies. Transfer learning for CMABs addresses the situation where models are defined on identical variables, although causal connections may differ. In this work, we extend transfer learning to setups involving CMABs defined on potentially different variables, with varying degrees of granularity, and related via an abstraction map. Formally, we introduce the problem of causally abstracted MABs (CAMABs) by relying on the theory of causal abstraction in order to express a rigorous abstraction map. We propose algorithms to learn in a CAMAB, and study their regret. We illustrate the limitations and the strengths of our algorithms on a real-world scenario related to online advertising.


Improving Robustness via Tilted Exponential Layer: A Communication-Theoretic Perspective

Puranik, Bhagyashree, Beirami, Ahmad, Qin, Yao, Madhow, Upamanyu

arXiv.org Artificial Intelligence

State-of-the-art techniques for enhancing robustness of deep networks mostly rely on empirical risk minimization with suitable data augmentation. In this paper, we propose a complementary approach motivated by communication theory, aimed at enhancing the signal-to-noise ratio at the output of a neural network layer via neural competition during learning and inference. In addition to minimization of a standard end-to-end cost, neurons compete to sparsely represent layer inputs by maximization of a tilted exponential (TEXP) objective function for the layer. TEXP learning can be interpreted as maximum likelihood estimation of matched filters under a Gaussian model for data noise. Inference in a TEXP layer is accomplished by replacing batch norm by a tilted softmax, which can be interpreted as computation of posterior probabilities for the competing signaling hypotheses represented by each neuron. After providing insights via simplified models, we show, by experimentation on standard image datasets, that TEXP learning and inference enhances robustness against noise and other common corruptions, without requiring data augmentation. Further cumulative gains in robustness against this array of distortions can be obtained by appropriately combining TEXP with data augmentation techniques.