Semi-Parametric Contextual Pricing with General Smoothness
Yuxuan Han, Xiaocong Xu, Yuxiao Wen, Yanjun Han, Ilan Lobel, Zhengyuan Zhou
Abstract
We study the contextual pricing problem, where in each round a seller observes a context, sets a price, and receives a binary purchase signal. We adopt a semi-parametric model in which the demand follows a linear parametric form composed with an unknown link function from a -Hölder class. Prior work established regret rates of for and for . Under a uni-modality condition, we propose a unified algorithm that combines the stationary subroutine of Wang & Chen (2025) with local polynomial regression, achieving the general rate for all . This recovers and strengthens existing results, while also addressing a gap in the prior analysis for . Our analysis develops tighter semi-parametric confidence regions, removes derivative lower bound assumptions from earlier work, and offers a sharper exploration–exploitation trade-off. These insights not only extend theoretical guarantees to general but also improve practical performance by reducing the need for long forced-exploration phases.
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