ecommerce platform teams

Abstract: Retailers can learn customer preferences by experimenting with different assortments. However, the cost of each experiment and the operational burden of repeatedly changing product offerings can make extensive experimentation impractical. We study how much a retailer can improve its final assortment decision using customer observations from one (or a very small number of) fixed experimental assortments. We consider the multinomial logit model, where product revenues are known but customer preferences are unknown. In this setting, we jointly design the experimental assortment and the rule for selecting a final assortment from observed customer choices to minimize worst-case regret: the expected revenue loss of the final assortment relative to an optimal assortment under the true preferences, maximized over possible customer preferences. We first characterize exactly the minimax regret and an optimal assortment when no experimentation is possible. We then show, surprisingly, that offering a single experimental assortment to just one customer can already substantially reduce regret, depending on how the products' revenues compare. We derive the exact minimax regret and an optimal experimental policy in this setting. When a single fixed experimental assortment is offered to many customers, we give a geometric characterization of the limiting minimax regret and construct an asymptotically optimal policy. Depending on product revenues, this single experiment can yield no improvement over no experimentation or nearly complete regret reduction. Finally, we extend our analysis to multiple experimental assortments chosen in advance, characterizing the limiting minimax regret, constructing asymptotically optimal policies, and identifying which collections of assortments allow worst-case regret to vanish as the number of customer observations grows.

Abstract: Sequential recommenders typically construct history inputs from item identifiers or content features using an embedding map shared across users. The same item therefore yields the same initial embedding representation, even when users have different relationships to the item. We propose personalized item representations in user history, where each item's embedding expresses its relationship to the user. Personalization becomes a property of the history inputs themselves, supplying richer evidence for later sequence modeling. We instantiate this idea with PRISM, which reuses upstream ranking computation to generate personalized item embeddings. An autoencoder jointly compresses all layer states from a user tower, a user--item tower, and same-request candidate mixing into one embedding per scored pair for downstream replay. Offline evaluation on Surface 1, a major recommendation surface at billion scale, reports an average downstream normalized entropy (NE) change of $-0.15\%$, compared with $-0.07\%$ for VISTA at similar history lengths. We further identify an empirical sequence-length scaling law: over history lengths of 26--240 events, NE gain follows a fitted power law with exponent 0.468, increasing from 0.06\% to 0.17\%. Therefore, personalized item representations in user history provide a new scaling dimension for improving recommendation quality.

Abstract: Large Language Models (LLMs) are increasingly used as recommendation generators in conversational recommender systems (RS) via retrieval-augmented generation (RAG). This flexible design introduces new sources of structural bias. This paper studies positional bias in top-1 and single-turn LLM-based RS: systematic dependence of the recommended item on the order in which candidates are presented in the prompt. We propose two complementary detection methodologies: (i) POB-ICM, based on contingency matrix analysis and Chi-square independence testing, and (ii) POB-UNBP, a sample-efficient approach derived from a uniformity null model under permutation-based evaluation, enabling stochastic decoding with formal statistical guarantees. Using a controlled RAG testbed for product recommendation, built on a real product catalog, a fixed prompt template and 2000 template-generated user queries with 20 permutations each (40,000 instances), both methodologies reject the null hypothesis of positional independence and uniformity in all evaluated state-of-the-art models. We introduce three complementary metrics -- permutation sensitivity, positional bias, and strong positional bias -- to quantify this effect, the latter targeting cases where the position displaces the recommendation towards clearly less relevant items rather than only choosing among comparably relevant ones. A robustness analysis across candidate-set size and decoding temperature shows that the bias is structural and model-dependent, not an artifact of deterministic decoding or candidate-set size. These results establish positional bias as a measurable, reproducible property of prompt-mediated recommendation pipelines in the evaluated setting and motivate routine auditing and governance controls (e.g., order randomization, standardized prompting) for deployed LLM-based RS. Source code is publicly released.

Abstract: A user history can admit multiple plausible next interactions, yet conventional sequential recommenders produce a single deterministic ranking. While diffusion models offer a natural way to sample alternative continuations, we show that existing target-item diffusion recommenders often suffer from severe sampling collapse, producing nearly identical outputs across independent draws. We identify two ubiquitous design choices that promote this collapse: joint learning of the latent space and denoiser, and in-trajectory supervision via discrete losses. To address these failure modes, we introduce DARTS (Diverse and Accurate Recommendation Through Sampling), a three-stage latent diffusion framework that explicitly decouples representation learning, generative modeling, and discrete ranking by learning and freezing the latent space before diffusion training and postponing ranking supervision to the final decoding stage. We further characterize sampling diversity using complementary measures of variation before and after decoding, and use posterior-predictive aggregation to exploit this diversity at inference. Across three Amazon Reviews 2023 categories, DARTS preserves substantially greater sampling diversity while outperforming strong sequential, generative-retrieval, and diffusion baselines by 7-12% on standard ranking metrics. Aggregating multiple samples further improves ranking accuracy at a fixed slate size.

Abstract: Generative recommendation (GR) predicts the next item through its semantic ID (SID). Existing methods commonly fit SID vocabularies to pretrained language model (PLM) representations of item descriptions, incurring additional training costs and making vocabulary coverage dependent on the fitting domains. We observe that pretrained sparse autoencoders expose PLM features with human-interpretable semantic annotations, allowing feature indices to serve as a reusable SID vocabulary. However, reusing this vocabulary requires preserving item distinctions under compact token budgets and learning to favor target items over candidates with shared dominant features. It also requires extending feature interpretability from item content to retrieval decisions. To address these challenges, we propose API, a framework that Adapts the Pretrained Interpretable vocabulary for effective and explainable GR without additional vocabulary learning. Within API, Pretrained Interpretable IDs (PIDs) retain selected feature indices and relative activation strengths for item discrimination. With PIDs as supervision, the Semantic Prediction Adapter (SPA) learns user preferences from interaction histories through joint feature-index and strength prediction. SPA combines both predictions to score candidate items, with item-level supervision encouraging the observed next item to outrank its alternatives. API further explains candidate score differences through feature contributions paired with their pretrained semantic annotations. Extensive experiments show that API achieves competitive performance across backbones and decoding schemes, while preserving item distinctions under compact token budgets and enabling explainable retrieval.

Abstract: Quantifying the similarity between items is fundamental to neighborhood-based collaborative filtering, yet many commonly used similarity measures are heuristics that lack theoretical justification. The use of heuristics forces practitioners to rely on empirical trial-and-error, offering little insight into why certain measures outperform others or how they might be improved. In this paper, we present a principled approach for designing item similarity measures grounded in probabilistic modeling and parameter estimation. By adopting this formal perspective, we derive two previously overlooked similarity measures based on the Bernoulli and multinomial distributions. Through an extensive ablation study we highlight the critical role of bias, probabilistic smoothing, treating the unknowns correctly, and choosing appropriate probability distributions. Finally, we show that the commonly used cosine similarity can be interpreted as the solution to a specific optimization problem, thereby providing a novel perspective on this decades-old heuristic.

Abstract: Cross-domain sequential recommendation (CDSR) alleviates data sparsity by transferring user behaviors across domains. Recent advances increasingly leverage large language models (LLMs) to bridge domains through global item semantics. However, this paradigm is inherently limited by two issues: I. semantic domain isolation, where item semantics remain domain-specific and hinder transferable modeling, and II. semantic-behavior inconsistency, where local semantic relations are more consistent with behavioral transitions, whereas such consistency often breaks down globally across domains. To this end, we propose PerCDR, an LLM-enhanced CDSR framework that shifts the focus from global semantic bridging to persona-guided behavioral modeling. Specifically, PerCDR leverages LLM-inferred personas to globally guide transferable cross-domain behavioral patterns, while exploiting local semantic relations to enhance intra-domain behavioral modeling, followed by domain preference adaptation for recommendation refinement. Extensive experiments demonstrate the superiority of PerCDR and validate its effectiveness.

Abstract: In modern commerce, firms and platforms typically use customer features from different sources to personalize prices: some features are verified using seller records or third-party data, while others are self-reported and may be strategically manipulated by buyers seeking lower prices. We therefore introduce a novel source-aware framework for contextual dynamic pricing with strategic buyers in a high-dimensional semiparametric setting, where buyer valuations follow a sparse linear model with an unknown noise distribution. To account for differences in manipulability across feature sources while enabling effective valuation learning, we develop the Source-Aware Localized exploration and calibrated Exploitation (SALE) pricing policy, which draws on verified features to localize price exploration and combines verified and reported features to correct for strategic manipulation during exploitation. Our localized exploration design allows converting binary purchase feedback into unbiased signals of conditional mean valuations, yielding a new population equation that supports consistent sparse estimation despite non-i.i.d. buyer arrivals. Building on this estimate, we develop a localized empirical-process analysis that exploits intrinsic sparse geometry to establish uniform guarantees for nonparametric estimation of the noise distribution in the high-dimensional setting. With these estimation guarantees, we establish SALE's self-recovery property, which keeps localized exploration valid with high probability and leads to a sublinear expected regret bound. Both simulation studies and real-data experiments demonstrate the appealing performance of SALE. To the best of our knowledge, our study is the first to provide a theoretical and practical framework for incorporating information provenance into dynamic pricing with strategic buyers.

Abstract: Evaluating fashion retrieval systems remains challenging due to the limited availability of benchmarks that capture the fine-grained, open-ended queries encountered in real-world search and recommendation. Existing benchmarks often rely on manual curation, predefined taxonomies, or synthetic prompts, limiting scalability and semantic coverage. We introduce FASHION-RQ: Mining Hierarchical Semantic Structure for Automated Evaluation of Fashion Retrieval, an automated framework that derives user-type queries and relevance sets directly from catalog structure. Our key insight is that hierarchical discrete representations learned by Residual Quantized Variational Autoencoders (RQ-VAE) organize products into semantically coherent clusters at progressively finer granularities. We leverage this structure to construct FASHION-RQBENCH, a scalable benchmark without manual query annotation or predefined taxonomies. We propose four complementary tasks for evaluating ranking, relevance classification, fine-grained sibling discrimination, and paraphrase robustness, alongside query- and attribute-level relevance metrics. Experiments across recent retrieval models demonstrate that FASHION-RQBENCH differentiates model capabilities across query types and attributes. A human study further shows that benchmark queries achieve comparable naturalness and higher intent clarity than real user queries, supporting their validity for real-world evaluation. The code and FASHION-RQBENCH dataset will be publicly released upon acceptance.

Abstract: Popularity bias is a well-known challenge in recommender systems, often leading to the over-exposure of popular items and reduced catalog coverage. In this work, we propose PR-entmax, a sparse prior-regularized objective that makes popularity correction context-dependent. We derive our method from a generalized variational principle in which an item popularity prior is incorporated directly into a sparse probability mapping, yielding a popularity-aware active support: the set of items receiving non-zero probabilities and hence non-zero gradients is determined jointly by contextual relevance and item popularity. As a result, the prior affects not only item probabilities, but also which items participate in gradient updates during training. The method requires no architectural changes and can be integrated into existing training pipelines by modifying only the loss function. At inference time, the prior term is removed, and items are ranked by the learned contextual relevance alone. Experiments across multiple benchmark datasets and sequential recommendation architectures show that PR-entmax consistently reduces popularity bias while preserving or improving recommendation relevance, advancing the relevance-debiasing trade-off.

Abstract: 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 customer preferences, we find that accounting for AI mediation can materially change optimal assortments and revenue. Across the tested capacity configurations, ignoring mediation yields mean revenue losses between 2.52% and 11.37% relative to the PL optimum. A much simpler deterministic plug-in, based only on the ordering of fitted AI utilities, performs substantially better, with mean losses of at most 0.53%. Motivated by this performance, we study assortment optimization under deterministic mediation. We characterize its computational complexity and show that, for any fixed number of customer segments, the problem admits a fully polynomial-time approximation scheme.

Abstract: Contextual information, capturing the circumstances of a user-item interaction, is central to recommender systems. Prior work draws context from location, time, or reviews, but not images; multimodal recommender systems mainly use images to enrich item or user representations, not identify situational context. We propose a new representation of context derived from images, spanning physical, social, and modal categories learned via a vision-language model. We introduce ICE-Fuse, a pipeline for evaluating this representation that fuses these categories and integrates them into a context-aware recommender system, using TripAdvisor data and Review-aware Graph Contrastive Learning as the recommendation algorithm. Image context does not outperform established signals standalone, but improves them combined, indicating complementary information. Semantic analysis shows image- and review-derived context capture distinct aspects of the interaction, positioning images as complementary context.

Abstract: Long-horizon LLM agents require reinforcement learning methods that can assign credit to intermediate decisions under sparse and delayed rewards. Existing group-based methods such as GRPO and GiGPO alleviate this issue by comparing rollout returns or repeated anchor states, but they still fail when the compared returns have no variation. We identify this failure mode as zero-credit failure: during early training, many failed rollouts contain useful prefixes, yet existing methods assign them no task-discriminative advantage. To address this issue, we propose Milestone Viability Potential Policy Optimization (MVPO), a potential-routed policy optimization algorithm that learns from viable failure prefixes. MVPO estimates prefix potential over Union-Find viability regions, repairs zero-credit groups with potential-difference advantages, and attenuates the potential branch according to relative performance progress. Experiments with Qwen2.5-1.5B-Instruct show that MVPO outperforms eight strong baselines, including GRPO and GiGPO. Under the same training length, MVPO improves over the GiGPO baseline by +4.4 success points on ALFWorld and +5.3 on WebShop, while adding only 0.16%-0.20% advantage-construction overhead.

Abstract: While the "Matthew Effect" and filter bubbles are widely recognized outcome-level biases in recommender systems, we reveal that Diffusion Recommender Models (DRMs) uniquely compound this issue through their generative dynamics. Rather than merely inheriting data imbalances, DRMs trigger a self-reinforcing amplification of popularity bias. We identify that this phenomenon is driven by two compounding mechanisms. First, while optimization loss is universally dominated by high-frequency items across recommenders, DRMs suffer from a unique structural prior mismatch during generation. Because the forward terminal distribution of long-tailed data deviates significantly from the standard Gaussian prior, reverse sampling trajectories inherently collapse toward high-density popular items, fundamentally suppressing niche item generation. To dismantle this self-reinforcing loop, we propose FairDiff, a plug-and-play fairness-aware diffusion framework. To overcome the popularity-dominated loss, we introduce Popularity Condition Guidance (PCG). Rather than altering the training objective, PCG acts as an inference-time distributional reweighting mechanism, mathematically reshaping the score-based gradient field to penalize high-popularity regions and guide trajectories toward niche semantics. Furthermore, we design a Semantic Calibration (SC) Module to bridge the prior mismatch, aligning the forward and reverse distributions via one-step optimal transport. Comprehensive evaluations demonstrate that FairDiff achieves state-of-the-art performance while effectively mitigating the self-reinforcing Matthew Effect, highlighting its value as a general framework for DRMs.

Abstract: Generative recommendation has emerged as a promising end-to-end paradigm for personalized recommendation. However, user preferences continuously evolve over time, making self-evolving an essential capability for generative recommender systems. Existing evolving strategies, such as continual retraining and distillation-based adaptation, directly update the shared model parameters using streaming interactions. Nevertheless, we find that directly applying such strategies to generative recommendation introduces a critical issue, termed evolution conflict. Specifically, heterogeneous preference shifts from different users are optimized within a fully shared autoregressive parameter space, causing dominant behavioral patterns to progressively dominate the model evolution process while underrepresented patterns become increasingly overlooked. To address this issue, we propose a self-evolving memory paradigm for generative recommendation, aiming to enable effective evolution across heterogeneous behavioral patterns. We further identify three key principles for effective self-evolving recommendation systems, including isolated memorization, reinforced evolution, and scalable application. Guided by these principles, we develop LION, a simple yet effective framework centered on a sparse Key-Value memory layer. Specifically, LION introduces sparse memory activation to isolate the evolution of different behavioral patterns, while a consolidation loss is designed to reinforce the learning of underrepresented preference dynamics during continual adaptation. Extensive experiments on diverse real-world datasets demonstrate the effectiveness of LION under various continual evolution settings (e.g., per-period evaluation, user/item group evaluation, and evolution convergence analysis). The codes are released at https://github.com/JazyJiang/Self-Evolving-Memory-for-Generative-Recommendation.

Abstract: Generative recommendation reformulates sequential recommendation as autoregressive generation by encoding items into semantic tokens, enabling improved scaling capability and cross-domain generalization. However, existing generative recommender systems typically follow a two-stage pipeline, where item tokenization is largely dominated by textual semantics with limited incorporation of collaborative signals and interaction similarity, leading to code assignments that are misaligned with downstream generation. Conversely, the generation stage tends to overlook the original semantic information, as the code sequences are re-embedded based on interaction data. This cross-stage information decoupling limits semantic coherence and recommendation accuracy. To address this issue, we propose SCRec, a general framework that enhances cross-stage coherence through bidirectional information supplementation. Specifically, we introduce (i) collaborative-enhanced tokenization to explicitly inject textualized collaborative signals into semantic tokenization, without introducing additional alignment task, (ii) semantic-guided generation to dynamically recalibrate semantic priors with learnable code embeddings in generation stage, and (iii) manifold alignment to reconcile the geometric mismatch between the embedding space of discrete codebook indices and the dense continuous semantic space. These interrelated components form a general framework that aligns semantic and collaborative signals and enhances cross-stage information coherence, with minimal additional training and inference costs. Extensive experiments demonstrate the effectiveness, robustness, and generalizability of our proposed framework.

Abstract: Federated recommendation enables collaborative model training while keeping user interaction data on local clients. A central problem in federated recommendation is how to aggregate useful information across clients for personalized recommendation. Existing personalized aggregation methods usually construct client relations from predefined parameter-based assumptions, such as parameter similarity or complementarity, and use these relations to determine aggregation weights. However, such methods construct a single global relation, which is insufficient to capture the hierarchical and multi-granularity nature of user relations in recommendation. Moreover, these predefined relations cannot directly reflect whether the related clients can improve prediction performance after aggregation. To address these limitations, we propose FedHUR, a federated recommendation framework for learning hierarchical utility-guided client relations. FedHUR takes item-item filters as the object for relation construction and aggregation. Specifically, it first aggregates and clusters each client's local information to obtain global hierarchical information. Each client computes hierarchical utility signals based on its local information and the global hierarchical information, indicating which collaborative information is useful for improving its prediction. The server uses these utility signals to retrieve clients that are useful to that client for further personalized aggregation. Extensive experiments on five real-world datasets show that FedHUR consistently outperforms existing federated recommendation baselines, demonstrating the effectiveness of hierarchical utility-guided client relation learning. Code is available at https://github.com/Mingzhe-Han/FedHUR.