AI-Mediation in Retail Markets: Revenue Effects and Assortment Optimization
AI shopping assistants increasingly influence which products consumers consider. We study retail assortment planning under AI mediation, where a retailer chooses a catalog, an AI intermediary forms a customer-facing shortlist, and the customer chooses from that shortlist according to a multinomial logit model. We consider both deterministic mediation, in which the AI follows a fixed segment-specific ranking, and stochastic mediation based on the Plackett-Luce model. Empirically, we construct a dataset of product rankings from leading AI models, estimate Plackett-Luce ranking models, and evaluate their predictive performance on held-out assortments. Combining these estimates with synthetic...
| Authors | Omar El Housni, Marouane Ibn Brahim |
|---|---|
| Primary category | cs.AI |
| Published | 9 October 2026 |
| Last updated at source | 9 October 2026 |
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