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

Author

Listed:
  • Ruben Geer

    (Vrije Universiteit)

  • Arnoud V. Boer

    (University of Amsterdam
    University of Amsterdam)

  • Christopher Bayliss

    (Universitat Oberta de Catalunya)

  • Christine S. M. Currie

    (University of Southampton)

  • Andria Ellina

    (University of Southampton)

  • Malte Esders

    (Technische Universität Berlin)

  • Alwin Haensel

    (Haensel AMS, Advanced Mathematical Solutions)

  • Xiao Lei

    (Columbia University)

  • Kyle D. S. Maclean

    (Western University)

  • Antonio Martinez-Sykora

    (University of Southampton)

  • Asbjørn Nilsen Riseth

    (University of Oxford)

  • Fredrik Ødegaard

    (Western University)

  • Simos Zachariades

    (University of Southampton)

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.

Suggested Citation

  • Ruben Geer & Arnoud V. Boer & Christopher Bayliss & Christine S. M. Currie & Andria Ellina & Malte Esders & Alwin Haensel & Xiao Lei & Kyle D. S. Maclean & Antonio Martinez-Sykora & Asbjørn Nilsen Ris, 2019. "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, Palgrave Macmillan, vol. 18(3), pages 185-203, June.
    • Handle: RePEc:pal:jorapm:v:18:y:2019:i:3:d:10.1057_s41272-018-00164-4
    DOI: 10.1057/s41272-018-00164-4
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    References listed on IDEAS

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