Personalized Pricing with Invalid Instrumental Variables: Identification, Estimation, and Policy Learning
无效工具变量下的个性化定价:识别、估计与政策学习
Pricing based on individual customer characteristics is widely used to maximize sellers' revenues. This work studies offline personalized pricing under endogeneity using an instrumental variable approach. Standard instrumental variable methods in causal inference/econometrics either focus on a discrete treatment space or require the exclusion restriction of instruments from having a direct effect on the outcome, which limits their applicability in personalized pricing. In…