This article presents a dynamic pricing model of a retailer selling an inventory, accounting for consumer behavior. The … structural (general) demand function. They obtain an original pricing rule, which explicitly accounts for the impact of price and … inventory on future profits. The dynamics of price do not have to imitate the dynamics of the reference price. Instead, the …

This article presents a dynamic pricing model of a retailer selling an inventory, accounting for consumer behavior. The … structural (general) demand function. The authors obtain an original pricing rule, which explicitly accounts for the impact of … price and inventory on future profits. The dynamics of price do not have to imitate the dynamics of the reference price …

We consider a firm that sells a product over T periods without knowing the demand function. The firm sequentially sets … prices to earn revenue and to learn the underlying demand function simultaneously. In practice, this problem is commonly … solved via greedy iterative least squares (GILS). At each time period, GILS estimates the demand as a linear function of the …