Operationalizing Dynamic Pricing Models: Bayesian Demand by Steffen Christ

By Steffen Christ

Dynamic Pricing of companies has turn into the norm for lots of younger provider industries – specially in today’s risky markets. Steffen Christ exhibits how theoretic optimization versions might be operationalized by means of utilising self-learning options to build appropriate enter variables, similar to latent call for and client cost sensitivity. He proves that the advance of the required forecasting versions is certainly attainable, i.e., during the utilization of real-time facts of on-line revenues channels.

Show description

Read or Download Operationalizing Dynamic Pricing Models: Bayesian Demand Forecasting and Customer Choice Modeling for Low Cost Carriers PDF

Best operations research books

Business Analytics: A Practitioner’s Guide

This e-book offers a consultant to companies on tips to use analytics to assist force from principles to execution. Analytics utilized in this manner offers “full lifecycle help” for enterprise and is helping in the course of all phases of administration decision-making and execution. The framework provided within the publication allows the potent interaction of commercial, analytics, and knowledge expertise (business intelligence) either to leverage analytics for aggressive virtue and to embed using company analytics into the company tradition.

Operationalizing Dynamic Pricing Models: Bayesian Demand Forecasting and Customer Choice Modeling for Low Cost Carriers

Dynamic Pricing of companies has develop into the norm for plenty of younger provider industries – specifically in today’s risky markets. Steffen Christ exhibits how theoretic optimization versions should be operationalized by way of utilizing self-learning thoughts to build correct enter variables, corresponding to latent call for and buyer fee sensitivity.

Methods and Procedures for Building Sustainable Farming Systems: Application in the European Context

Exhibiting how the strategy of sustainability overview performs a key function in picking the easiest agricultural effective mode, this publication courses the reader during the technique of identifying, from one of the a number of techniques for development farming structures, the strategy of decision-making that would bring about the main applicable end result, given the context.

Newton-Type Methods for Optimization and Variational Problems

This e-book offers finished cutting-edge theoretical research of the elemental Newtonian and Newtonian-related techniques to fixing optimization and variational difficulties. A primary concentration is the connection among the fundamental Newton scheme for a given challenge and algorithms that still take pleasure in quick neighborhood convergence.

Additional info for Operationalizing Dynamic Pricing Models: Bayesian Demand Forecasting and Customer Choice Modeling for Low Cost Carriers

Sample text

The seller finds it inessential to consider the impact of the pricing decision on the learning process itself but instead adopts a learning CHAPTER 3. 1: Certainty equivalent learning literature (excerpt, in chronological order) approach based on a certainty-equivalent heuristic, which disregards the uncertainty of the learned arrival rate during price setting. However, the true parameter of the targeted Poisson distribution is learned using Bayesian updating. The results based on an assumed Gamma distribution (a conjugate prior of the Poisson distribution5 ) complement the results of Gallego and van Ryzin (1994), as dynamic pricing appears to be most valuable “in settings with high but resolvable initial uncertainty about how successful the product is” (Aviv and Pazgal, 2002, p.

A certain monotony is not required). 3. Inquiries from customers do not explicitly relate to the availability of specific price-product-combinations but instead refer to given services or products for which a spot price is quoted on request. In addition to these considerations, Talluri and van Ryzin (2005, Sec. 1) name a few more technical prerequisites for the application of dynamic pricing schemes: 1. The ability to adjust prices in a timely fashion without incurring exorbitant costs or complexity.

The undisputed European pioneer in low-cost air service is Ireland-based Ryanair, which heavily draws from the archetypal low-cost model of Southwest Airlines. 3 illustrates the post-deregulation development in European airline industry conduct. The new low-cost carriers (LCC) were able to start from scratch without the burden that the incumbent players carried in terms of route networks, equipment and labor costs. They henceforth often hit those established players simultaneously on three major dimensions: cost, price and sometimes even service.

Download PDF sample

Rated 4.83 of 5 – based on 11 votes