• DocumentCode
    1929385
  • Title

    Dynamic pricing and reinforcement learning

  • Author

    Carvalho, Alexandre X. ; Puterman, Martin L.

  • Author_Institution
    British Columbia Univ., Vancouver, BC, Canada
  • Volume
    4
  • fYear
    2003
  • fDate
    20-24 July 2003
  • Firstpage
    2916
  • Abstract
    We consider the problem of optimizing sales revenues based on a parametric model in which the parameters are unknown. The manager has to set the price at a level in order to maximize current revenues and at the same time learn about the parameter values to increase the future revenues. Both demand and price are assumed to be continuous variables. We study several different strategies for learning and show that a one-step look-ahead rule produces good short term performance.
  • Keywords
    learning (artificial intelligence); optimisation; parameter estimation; pricing; sales management; continuous variables; dynamic pricing; one-step look-ahead rule; parametric model; reinforcement learning; sales revenue optimization; Bayesian methods; Business; Infinite horizon; Learning; Marketing and sales; Noise level; Parametric statistics; Pricing; Stochastic processes;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Neural Networks, 2003. Proceedings of the International Joint Conference on
  • ISSN
    1098-7576
  • Print_ISBN
    0-7803-7898-9
  • Type

    conf

  • DOI
    10.1109/IJCNN.2003.1224034
  • Filename
    1224034