StoBasket: Joint Upsell and Cross-Sell Optimization for Contribution Margin
Retail recommenders rank relevance, but retailers earn contribution margin: an upsell earns the margin difference over the item it replaces, whereas a cross-sell earns its full margin. We introduce joint stochastic basket editing, a formulation in which one policy selects replacement and addition offers for an existing basket, values them by expected incremental contribution margin, and couples them through displayed-offer, accepted-offer, and joint-acceptance response channels. To our knowledge, it is the first formulation in which upsell and cross-sell responses are coupled; prior separable treatments are its zero-coupling special case. In real-data-calibrated simulations on five public...
| Authors | Xin Heng |
|---|---|
| Primary category | cs.AI |
| Published | 16 October 2026 |
| Last updated at source | 16 October 2026 |
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