Dynamic pricing and learning with competition: insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference

Ruben van de Geer, Arnoud V. den Boer, Christopher Bayliss, Christine S.M. Currie, Andria Ellina, Malte Esders, Alwin Haensel, Xiao Lei, Kyle D.S. Maclean, Antonio Martinez-Sykora, Asbjørn Nilsen Riseth, Fredrik Ødegaard, Simos Zachariades

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

This paper presents the results of the Dynamic Pricing Challenge, held on the occasion of the 17th INFORMS Revenue Management and Pricing Section Conference on June 29–30, 2017 in Amsterdam, The Netherlands. For this challenge, participants submitted algorithms for pricing and demand learning of which the numerical performance was analyzed in simulated market environments. This allows consideration of market dynamics that are not analytically tractable or can not be empirically analyzed due to practical complications. Our findings implicate that the relative performance of algorithms varies substantially across different market dynamics, which confirms the intrinsic complexity of pricing and learning in the presence of competition.

Original languageEnglish
Pages (from-to)1-19
Number of pages19
JournalJournal of Revenue and Pricing Management
DOIs
Publication statusE-pub ahead of print - 16 Oct 2018

Fingerprint

Dynamic pricing
Pricing
Market dynamics
Intrinsic
Market environment
Revenue management
Relative performance
The Netherlands

Keywords

  • Competition
  • Dynamic pricing
  • Learning
  • Numerical performance

Cite this

van de Geer, Ruben ; den Boer, Arnoud V. ; Bayliss, Christopher ; Currie, Christine S.M. ; Ellina, Andria ; Esders, Malte ; Haensel, Alwin ; Lei, Xiao ; Maclean, Kyle D.S. ; Martinez-Sykora, Antonio ; Riseth, Asbjørn Nilsen ; Ødegaard, Fredrik ; Zachariades, Simos. / Dynamic pricing and learning with competition : insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference. In: Journal of Revenue and Pricing Management. 2018 ; pp. 1-19.
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abstract = "This paper presents the results of the Dynamic Pricing Challenge, held on the occasion of the 17th INFORMS Revenue Management and Pricing Section Conference on June 29–30, 2017 in Amsterdam, The Netherlands. For this challenge, participants submitted algorithms for pricing and demand learning of which the numerical performance was analyzed in simulated market environments. This allows consideration of market dynamics that are not analytically tractable or can not be empirically analyzed due to practical complications. Our findings implicate that the relative performance of algorithms varies substantially across different market dynamics, which confirms the intrinsic complexity of pricing and learning in the presence of competition.",
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van de Geer, R, den Boer, AV, Bayliss, C, Currie, CSM, Ellina, A, Esders, M, Haensel, A, Lei, X, Maclean, KDS, Martinez-Sykora, A, Riseth, AN, Ødegaard, F & Zachariades, S 2018, 'Dynamic pricing and learning with competition: insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference' Journal of Revenue and Pricing Management, pp. 1-19. https://doi.org/10.1057/s41272-018-00164-4

Dynamic pricing and learning with competition : insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference. / van de Geer, Ruben; den Boer, Arnoud V.; Bayliss, Christopher; Currie, Christine S.M.; Ellina, Andria; Esders, Malte; Haensel, Alwin; Lei, Xiao; Maclean, Kyle D.S.; Martinez-Sykora, Antonio; Riseth, Asbjørn Nilsen; Ødegaard, Fredrik; Zachariades, Simos.

In: Journal of Revenue and Pricing Management, 16.10.2018, p. 1-19.

Research output: Contribution to JournalArticleAcademicpeer-review

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