Dynamic Pricing for the Open Online Ticket System: A Surrogate Modeling Approach

Dynamic pricing is frequently used in online marketplaces, ticket sales, and booking systems. The commercial principles of dynamic systems are often kept secret; however, their application causes complex changes human behavior. Thus, a scientific tool needed to evaluate predict the impact strategies. Publications field lack common quality evaluation methodology, public data, source code, making them difficult reproduce. In this paper, data-driven method, DPRank, for evaluating proposed. DPRank first builds surrogate price elasticity demand model using data generated by hidden model, then applies build an exposed model. models were systematically compared terms Monte Carlo simulation company’s revenue. effectiveness proposed method was tested on dataset collected from website Russian railway passenger carrier company. Depending train type, difference between can vary several dozen percent average, indicating potential improving existing (hidden)