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arXiv AI By Omar El Housni, Marouane Ibn Brahim

AI-Mediation in Retail Markets: Revenue Effects and Assortment Optimization

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The paper investigates how AI shopping assistants influence retail assortment planning by mediating product visibility. It models two mediation types—deterministic ranking and stochastic Plackett‑Luce ranking—and shows that ignoring AI mediation can lead to significant revenue losses (2.52%–11.37%). A simpler deterministic plug‑in approach reduces losses to at most 0.53%, and the authors prove that deterministic mediation allows a fully polynomial‑time approximation scheme for assortment optimization when customer segments are fixed.

Machine-generated by The Flow from the publisher's headline and feed description — not written or checked by a human. The full article lives at arXiv AI.

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