Join the Dynamic Pricing Competition

Bringing together academia and industry to compete in pricing algorithms.

Learn more

Join the Dynamic Pricing Competition

Bringing together academia and industry to compete in pricing algorithms.

Learn more

The dynamic pricing competition

Pricing is one of the most challenging topics in the business world, with huge impacts when it comes to making profit or loss. In today’s world, prices are changed more frequently than ever before. Everyone involved tries to make the best use of data for their pricing decisions. However, designing data-driven price algorithms that perform well in competitive markets with uncertainty about customer behavior remains a big challenge.

To address this challenge, we invite people from academia and industry from various backgrounds(Operations Research, Pricing & Revenue Management, Machine Learning & AI – Reinforcement Learning) to let their ideas and algorithms compete in various basic market settings. By participating you will receive valuable insights on how your pricing strategy is performing: where it is good and outperforming others, and where is it lacking behind and gets beaten. Get the ultimate proof that your pricing algorithm is rocket science and unbeatable!

Contest details: We test and evaluate the performance of data-driven pricing algorithms in three different market scenarios: a duopoly with inventory constraints, a multi-product oligopoly, and a large market with horizontal product differentiation (more details on the three market scenarios are provided below). Each participating team is allowed to submit at most one algorithm for each market scenario. It is thus possible (but not necessary) to submit an algorithm for all three market scenarios; one can also participate in just one or two market scenarios. Algorithms have to be written in Python; more details on the required input and output variables and computation time restrictions are provided below.

From May 1st until July 31st, 2019 we run a training period, during which we simulate the performance of the algorithms each night. The simulations are based on undisclosed demand-generating mechanisms that are used to determine the average total revenue obtained by each algorithm. Based on these simulations we will provide information on the algorithm’s performance to the participants, which can be used to improve the algorithms. Thus, during the test period it is possible to replace every day one’s algorithm by a (hopefully) improved version.

By August 1st all participant needs to submit their final algorithms for the “real” contest simulation runs. Rankings are based on the obtained average revenue over all simulations. Based on these final rankings we will determine the winner of the contest, for each of the three market scenarios. For each market scenario, the best performing team will receive 500 euro. In case of unforeseen events, the organizing committee decides on the final ranking.

The submitted algorithm will always be your property, we will never publish the code, we only use it exclusively within the competition and for academic purposes (e.g. comparing different price algorithms), but never for commercial purposes. In case you would like to keep your algorithm private, it is possible to opt-out of an eventual future publication or other academic use by sending us an email to info@dynamic-pricing-competition.com before the competition starts. With the final submission – not the test phase – we only ask for a brief (e.g. 100 words) description of your approach. These descriptions are only used in the performance evaluation, similar to the below paper with the results of the 1st contest edition in 2017 at the Informs RM & Pricing Conference in Amsterdam.

 

Organized by:
Register here for the Competition





important dates

Final definition of competition setup and deadlines

end of February 2019

Start of training period

1st of May 2019

Deadline for final algorithm submission

1st of August 2019

Announcement of winners and publishing of results

Mid August 2019

pricing scenarios

(1) Airline / Hotel Duopoly

A duopoly inspired by airlines, with finite capacities, a finite booking horizon and unknown demand function.

(2) Retail Oligopoly

An oligopoly with unknown demand functions, where each seller has multiple (substitute or complementary) products on sale.

(3) E-Commerce

A large competitive market where each seller sells only a single product, with horizontal product differentiation and unknown demand function.

Links to Specification-PDFs for each pricing scenario

(1) Airline / Hotel Case 
(2) Retail Case 
(3) E-commerce / Core Dynamic Pricing  Case

general process

Signup

Simple registration: we only require your name and email address. Latest after 2-5 days of registration, you will receive a username, login-url and password. Each team can only submit one algorithm per pricing scenario. Note that we might close registration when the number of signups exceeds our capacity.

Development & Training

The training period starts on the 1st of May, where you can at night upload your algorithms. We perform training runs in which the algorithms already compete against each other. In the morning we will email you the logs of the nightly run.

Final contest & evaluation

Submission deadline is midnight 12 a.m. 1st of August. The ultimate simulation runs are performed to identify and crown the winner. Full and detailed performance reports are generated and shared with participants.

WHY YOU SHOULD JOIN?

... apart from winning and proving you are best ...

Prize money

The winner of each pricing scenario will receive an economic prize of an amount of 500 EUR.

Detailed performance evaluation

You will receive a detailed performance evaluation of your algorithm and the competition.

Scoring & Benchmark

Get a scoring of your performance based on the benchmarks set by the other participants. Plus, an optional score entry of your algorithms on our (to come) "Leaderboard", similar to the netflixprize.

Similar to the 1st edition 2017, we may try to publish the results and findings of the 2019 competition again in a publication, depending on the academic value of the obtained results.

Paper on the 1st edition - Dynamic Pricing Challenge at the Informs RM & Pricing Conference in Amsterdam 2017

published in the Journal of Revenue and Pricing Management 2018

Organizer

 

For more information please contact:  info@dynamic-pricing-competition.com

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