Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Studying Product Competition Using Representation Learning   Studying competition and market structure at the product level instead of
brand level can provide firms with insights on cannibalization and product line
optimization. However, it is computationally challenging to analyze
product-level competition for the millions of products available on e-commerce
platforms. We introduce Product2Vec, a method based on the representation
learning algorithm Word2Vec, to study product-level competition, when the
number of products is large. The proposed model takes shopping baskets as
inputs and, for every product, generates a low-dimensional embedding that
preserves important product information. In order for the product embeddings to
be useful for firm strategic decision making, we leverage economic theories and
causal inference to propose two modifications to Word2Vec. First of all, we
create two measures, complementarity and exchangeability, that allow us to
determine whether product pairs are complements or substitutes. Second, we
combine these vectors with random utility-based choice models to forecast
demand. To accurately estimate price elasticities, i.e., how demand responds to
changes in price, we modify Word2Vec by removing the influence of price from
the product vectors. We show that, compared with state-of-the-art models, our
approach is faster, and can produce more accurate demand forecasts and price
elasticities.

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The categories of this paper are: solv-int
14
The categories of this paper are: math-ph
32
The categories of this paper are: atom-ph
8
The categories of this paper are: hep-ex
4
The categories of this paper are: cond-mat
34
The categories of this paper are: chem-ph
3
The categories of this paper are: physics
22
The categories of this paper are: chao-dyn
13
The categories of this paper are: quant-ph
15
The categories of this paper are: nucl-ex
2
The categories of this paper are: math
5
The categories of this paper are: gr-qc
30
The categories of this paper are: q-alg
9
The categories of this paper are: nlin
33
The categories of this paper are: plasm-ph
35
The categories of this paper are: mtrl-th