Narahari, Y and Raju, CVL and Ravikumar, K and Shah, Sourabh (2005) Dynamic pricing models for electronic business. In: Sadhana, 30 (2 & 3). pp. 231-256.
Dynamic pricing is the dynamic adjustment of prices to consumers depending upon the value these customers attribute to a product orservice. 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:||Journal Article|
|Additional Information:||Copyright for this article belongs to Indian Academy of Sciences.|
|Keywords:||Dynamic pricing;shopbots;pricebots;inventory-based models;data-driven models;reinforcement learning|
|Department/Centre:||Division of Electrical Sciences > Computer Science & Automation (Formerly, School of Automation)|
|Date Deposited:||23 Aug 2005|
|Last Modified:||19 Sep 2010 04:19|
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