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Journal of Revenue and Pricing Management

, Volume 18, Issue 3, pp 185–203 | Cite as

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

  • Ruben van de GeerEmail author
  • 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
Practice Article

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.

Keywords

Dynamic pricing Learning Competition Numerical performance 

Notes

Acknowledgements

Chris Bayliss and Christine Currie were funded by the EPSRC under Grant Number EP/N006461/1. Andria Ellina and Simos Zachariades were part funded by EPSRC as part of their PhD studentships. Asbjørn Nilsen Riseth was partially funded by EPSRC Grant EP/L015803/1.

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Copyright information

© Springer Nature Limited 2018

Authors and Affiliations

  • Ruben van de Geer
    • 1
    Email author
  • Arnoud V. den Boer
    • 2
    • 3
  • Christopher Bayliss
    • 4
  • Christine S. M. Currie
    • 5
  • Andria Ellina
    • 5
  • Malte Esders
    • 6
  • Alwin Haensel
    • 7
  • Xiao Lei
    • 8
  • Kyle D. S. Maclean
    • 9
  • Antonio Martinez-Sykora
    • 5
  • Asbjørn Nilsen Riseth
    • 10
  • Fredrik Ødegaard
    • 9
  • Simos Zachariades
    • 5
  1. 1.Department of MathematicsVrije UniversiteitAmsterdamThe Netherlands
  2. 2.Korteweg-de Vries Institute for MathematicsUniversity of AmsterdamAmsterdamThe Netherlands
  3. 3.Amsterdam Business SchoolUniversity of AmsterdamAmsterdamThe Netherlands
  4. 4.IN3 - Computer Science DepartmentUniversitat Oberta de CatalunyaBarcelonaSpain
  5. 5.Mathematical SciencesUniversity of SouthamptonSouthamptonUK
  6. 6.Faculty IV Electrical Engineering and Computer ScienceTechnische Universität BerlinBerlinGermany
  7. 7.Haensel AMS, Advanced Mathematical SolutionsBerlinGermany
  8. 8.Department of Industrial Engineering and Operations ResearchColumbia UniversityNew YorkUSA
  9. 9.Ivey Business SchoolWestern UniversityLondonCanada
  10. 10.Mathematical InstituteUniversity of OxfordOxfordUK

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