The dynamic pricing competition
Pricing is one of, if not the most challenging topics in the business world. It has huge impacts when it comes to making a loss or a profit. In today’s world prices are changed more frequent then ever before. Everyone involved tries to make the best use of data in the pricing decisions. But how are all these algorithms performing in the setting of competition with other algorithms, all in the context of uncertainty, incomplete information, and heterogeneous customer behavior? And after all, don’t forget the customer, they also have different objectives, follow patterns, and keep in mind they are not all alike.
Pricing combines all core challenges! Therefore, we want to bring together 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. 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!
You don’t need to be a fancy programmer to participate, it’s more about concepts, strategies and approaches:
The minimal submission will only require a Python script with one function, see below example, which takes historical prices and sales data as input and returns a price to be used in the next iteration. Of course, within your function you can get as fancy and advanced as you like.
The submitted algorithm will always be your property, we will never publish the code, we only use it exclusively within the competition. All algorithms will also be deleted from our servers after the competition. We only ask for a brief (not detailed!) 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.
Note: The detailed specifications of the competition and the submission requirements will follow soon. Please signed up to the Email list to be first to get the information.
Example of a simple algorithm submission:
(simple dynamic pricing case: only competition, no capacity constraints, one product)
Register for the Competition here
Final definition of competition setup and deadlines
latest in March 2019
Start of training period
in May 2019
Deadline for final algorithm submission
in June 2019
Announcement of winners and publishing of results
- More details are following soon -
The demand models are NOT fully defined yet – wait for our specifications to come – but generally we will try to consider most of the following:
You are faced with new and returning customers, returning customers are potentially aware of the price history and may act accordingly.
Also, customers are not all the same, you will observe some with high price elasticities and others who don’t care much about the money they spend.
WHY YOU SHOULD JOIN?
... apart from winning and proving you are best ...
Similar to the 1st edition 2017, we will try to publish the results and findings of the 2019 competition again in a publication.
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
For more information please contact: firstname.lastname@example.org