Dynamic Pricing with Demand Covariates

Dynamic Pricing with Demand Covariates

We consider a firm that sells a product over T periods without knowing the demand function. The firm sequentially sets prices to earn revenue and to learn the underlying demand function simultaneously. In practice, this problem is commonly solved via greedy iterative least squares (GILS). At each time period, GILS estimates the demand as a linear function of the price by applying least squares ...

Dynamic pricing with real-time demand learning

In many service industries, the firm adjusts the product price dynamically by taking into account the current product inventory and the future demand distribution. Because the firm can easily monitor the product inventory, the success of dynamic pricing relies on an accurate demand forecast. In this paper, we consider a situation where the firm does not have an accurate demand forecast, but can...

Dynamic pricing problems with elastic demand

We study a dynamic pricing problem for a company that sells a single product to a group of customers over a finite time horizon. These customers are price sensitive and the price of today influences the group of customers of tomorrow. The objective is to set the prices over time so as to maximize revenue. We study two customer models: a multiplicative and an additive model. Our main contributio...

Dynamic Pricing with Demand Learning under Competition

In this thesis, we focus on oligopolistic markets for a single perishable product, where firms compete by setting prices (Bertrand competition) or by allocating quantities (Cournot competition) dynamically over a finite selling horizon. The price-demand relationship is modeled as a parametric function, whose parameters are unknown, but learned through a data driven approach. The market can be e...

Electronic Companion — “ Dynamic Pricing for Nonperishable Products with Demand Learning