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Minimax-Optimal Semiparametric Contextual Dynamic Pricing with Multimodal Revenue

2026-08-04 · Xueping Gong, Zhuoluo Zhang, Zhaowei Miao, Jiheng Zhang arxiv

We study contextual dynamic pricing with arbitrary covariate sequences and bounded, possibly nonbinary purchase quantities. Demand follows a semiparametric surplus-index model with an unknown linear valuation parameter and an unknown Hölder-smooth response. We impose neither concavity nor strong unimodality on revenue and allow nonunique optimal prices. We develop a pilot-corrected layered decision-partitioning policy that combines directional pilot estimation, local polynomial learning, predictable data assignment, and global action elimination. Pilot correction removes the first-order effect of valuation-parameter error, while permanent labels enable concentration under adaptive sampling. The policy attains the minimax smoothness-dependent horizon rate up to logarithmic factors; a matching lower bound already holds for a constant-context binary-demand subclass.

📄 PDF Abstract BibTeX arXiv:2608.03142

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