Zhihao Cen

Patrick Bajari, Zhihao Cen, Victor Chernozhukov et al.

We develop empirical models that efficiently process large amounts of unstructured product data (text, images, prices, quantities) to produce accurate hedonic price estimates and derived indices. To achieve this, we generate abstract product attributes (or ``features'') from descriptions and images using deep neural networks. These attributes are then used to estimate the hedonic price function. To demonstrate the effectiveness of this approach, we apply the models to Amazon's data for first-party apparel sales, and estimate hedonic prices. The resulting models have a very high out-of-sample predictive accuracy, with $R^2$ ranging from $80\%$ to $90\%$. Finally, we construct the AI-based hedonic Fisher price index, chained at the year-over-year frequency, and contrast it with the CPI and other electronic indices.

Aoran Lyu, Shixian Zhao, Chuhua Xian et al.

Reduced-order simulation is an emerging method for accelerating physical simulations with high DOFs, and recently developed neural-network-based methods with nonlinear subspaces have been proven effective in diverse applications as more concise subspaces can be detected. However, the complexity and landscape of simulation objectives within the subspace have not been optimized, which leaves room for enhancement of the convergence speed. This work focuses on this point by proposing a general method for finding optimized subspace mappings, enabling further acceleration of neural reduced-order simulations while capturing comprehensive representations of the configuration manifolds. We achieve this by optimizing the Lipschitz energy of the elasticity term in the simulation objective, and incorporating the cubature approximation into the training process to manage the high memory and time demands associated with optimizing the newly introduced energy. Our method is versatile and applicable to both supervised and unsupervised settings for optimizing the parameterizations of the configuration manifolds. We demonstrate the effectiveness of our approach through general cases in both quasi-static and dynamics simulations. Our method achieves acceleration factors of up to 6.83 while consistently preserving comparable simulation accuracy in various cases, including large twisting, bending, and rotational deformations with collision handling. This novel approach offers significant potential for accelerating physical simulations, and can be a good add-on to existing neural-network-based solutions in modeling complex deformable objects.

Dmytro Korenkevych, Frank Cheng, Artsiom Balakir et al.

The online advertising market, with its thousands of auctions run per second, presents a daunting challenge for advertisers who wish to optimize their spend under a budget constraint. Thus, advertising platforms typically provide automated agents to their customers, which act on their behalf to bid for impression opportunities in real time at scale. Because these proxy agents are owned by the platform but use advertiser funds to operate, there is a strong practical need to balance reliability and explainability of the agent with optimizing power. We propose a generalizable approach to optimizing bidding policies in production environments by learning from real data using offline reinforcement learning. This approach can be used to optimize any differentiable base policy (practically, a heuristic policy based on principles which the advertiser can easily understand), and only requires data generated by the base policy itself. We use a hybrid agent architecture that combines arbitrary base policies with deep neural networks, where only the optimized base policy parameters are eventually deployed, and the neural network part is discarded after training. We demonstrate that such an architecture achieves statistically significant performance gains in both simulated and at-scale production bidding environments. Our approach does not incur additional infrastructure, safety, or explainability costs, as it directly optimizes parameters of existing production routines without replacing them with black box-style models like neural networks.

Hengrui Cai, Zhihao Cen, Ling Leng et al.

We consider the sequential decision optimization on the periodic environment, that occurs in a wide variety of real-world applications when the data involves seasonality, such as the daily demand of drivers in ride-sharing and dynamic traffic patterns in transportation. In this work, we focus on learning the stochastic periodic world by leveraging this seasonal law. To deal with the general action space, we use the bandit based on Gaussian process (GP) as the base model due to its flexibility and generality, and propose the Periodic-GP method with a temporal periodic kernel based on the upper confidence bound. Theoretically, we provide a new regret bound of the proposed method, by explicitly characterizing the periodic kernel in the periodic stationary model. Empirically, the proposed algorithm significantly outperforms the existing methods in both synthetic data experiments and a real data application on Madrid traffic pollution.