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Contextual Dynamic Pricing with Strategic Buyers
Published 2024“…Recognizing these challenges, we propose a strategic dynamic pricing policy that incorporates the buyers’ strategic behavior into the online learning to maximize the seller’s cumulative revenue. We first prove that existing nonstrategic pricing policies that neglect the buyers’ strategic behavior result in a linear <math><mrow><mi>Ω</mi><mo>(</mo><mi>T</mi><mo>)</mo></mrow></math> regret with T the total time horizon, indicating that these policies are not better than a random pricing policy. …”