Narahari, Y., Raju, C. V. L., Ravikumar, K. and Shah, Sourabh (2005) Dynamic pricing models for electronic business. Sadhana - Academy Proceedings in Engineering Sciences, 30 (2 & 3). pp. 231-256. ISSN 0256-2499 (Print), 0973-7677 (Online)

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Abstract

Dynamic pricing is the dynamic adjustment of prices to consumers
depending upon the value these customers attribute to a product or service. Today’s
digital economy is ready for dynamic pricing; however recent research has shown
that the prices will have to be adjusted in fairly sophisticated ways, based on
sound mathematical models, to derive the benefits of dynamic pricing. This article
attempts to survey different models that have been used in dynamic pricing. We
first motivate dynamic pricing and present underlying concepts, with several examples,
and explain conditions under which dynamic pricing is likely to succeed. We
then bring out the role of models in computing dynamic prices. The models surveyed
include inventory-based models, data-driven models, auctions, and machine
learning. We present a detailed example of an e-business market to show the use
of reinforcement learning in dynamic pricing.

Item Type:	Article
Additional Information:	[1] Acknowledgement (funding): This research is supported by a research grant IDEAS (Intelligent Digital Economy Algorithms) from Intel India Development Center, Bangalore [2] © Printed in India
Uncontrolled Keywords:	Dynamic pricing; shopbots; pricebots; inventory-based models; data-driven models; reinforcement learning.
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Department of Accounting & Finance
Related URLs:	Publisher Publisher
Last Modified:	14 Oct 2016 09:32
URI:	http://gala.gre.ac.uk/id/eprint/13365

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