Multi-attribute dynamic pricing for online markets using intelligent agents

Prithviraj Dasgupta, Yoshitsugu Hashimoto

Research output: Chapter in Book/Report/Conference proceedingConference contribution

20 Scopus citations

Abstract

Intelligent agents called pricebots provide a conviennent mechanism for implementing automated dynamic pricing algorithms for sellers in an online economy. Pricebots enable an online seller to dynamically calculate a competitive price for a product in response to variations in market parameters such as competitors' prices and consumers' purchase preferences. Previous research on pricebot mediated pricing makes certain simplifying assumptions of on-line markets such as providing sellers with complete knowledge of market parameters tofacililate calculations by the dynamic pricing algorithm, and, considering product price as the only attribute that determines consumers' purchase decision. In this paper, we address the problem of dynamic pricing in a competitive online economy where a product is differentiated by buyers and sellers on multiple attributes, and, sellers possess limited knowledge about market parameters. A seller uses a collaborative filtering algorithm to determine temporal consumers' purchase preferences followed by a dynamic pricing algorithm to determine a competitive price for the product. Simulation results using our market model show that collaborative filtering enabled dynamic pricing techniques compare favorably against other dynamic pricing algorithms. Collaborative filtering enables sellers to rapidly identify temporal customer preferences and improve sellers' profits.

Original languageEnglish (US)
Title of host publicationProceedings of the Third International Joint Conference on Autonomous Agents and Multiagents Systems, AAMAS 2004
EditorsN.R. Jennings, C. Sierra, L. Sonenberg, M. Tambe
Pages277-284
Number of pages8
StatePublished - 2004
EventProceedings of the Third International Joint Conference on Autonomous Agents and Multiagent Systems, AAMAS 2004 - New York, NY, United States
Duration: Jul 19 2004Jul 23 2004

Publication series

NameProceedings of the Third International Joint Conference on Autonomous Agents and Multiagent Systems, AAMAS 2004
Volume1

Conference

ConferenceProceedings of the Third International Joint Conference on Autonomous Agents and Multiagent Systems, AAMAS 2004
Country/TerritoryUnited States
CityNew York, NY
Period7/19/047/23/04

Keywords

  • Agent mediated e-commerce
  • Collaborative filtering
  • Dynamic pricing

ASJC Scopus subject areas

  • Engineering(all)

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