Multi-attribute regret-based dynamic pricing

Janyl Jumadinova, Prithviraj Dasgupta

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

2 Scopus citations

Abstract

In this paper, we consider the problem of dynamic pricing by a set of competing sellers in an information economy where buyers differentiate products along multiple attributes, and buyer preferences can change temporally. Previous research in this area has either focused on dynamic pricing along a limited number of (e.g. binary) attributes, or, assumes that each seller has access to private information such as preference distribution of buyers, and profit/price information of other sellers. However, in real information markets, private information about buyers and sellers cannot be assumed to be available a priori. Moreover, due to the competition between sellers, each seller faces a tradeoff between accuracy and rapidity of the pricing mechanism. In this paper, we describe a multi-attribute dynamic pricing algorithm based on minimax regret that can be used by a seller's agent called a pricebot, to maximize the seller's utility. Our simulation results show that the minimax regret based dynamic pricing algorithm performs significantly better than other algorithms for rapidly and dynamically tracking consumer attributes without using any private information from either buyers or sellers.

Original languageEnglish (US)
Title of host publicationAgent-Mediated Electronic Commerce and Trading Agent Design and Analysis - AAMAS Workshop, AMEC 2008, and AAAI Workshop, TADA 2008, Revised Selected Papers
PublisherSpringer Verlag
Pages73-87
Number of pages15
ISBN (Print)3642152368, 9783642152368
DOIs
StatePublished - 2010
Event10th Workshop on Agent-Mediated Electronic Commerce, AMEC-X, Co-located with AAMAS 2008 and the 6th Workshop on Trading Agent Design and Analysis, TADA, Co-located with AAAI 2008 - Chicago, IL, United States
Duration: Jul 14 2008Jul 14 2008

Publication series

NameLecture Notes in Business Information Processing
Volume44 LNBIP
ISSN (Print)1865-1348

Conference

Conference10th Workshop on Agent-Mediated Electronic Commerce, AMEC-X, Co-located with AAMAS 2008 and the 6th Workshop on Trading Agent Design and Analysis, TADA, Co-located with AAAI 2008
CountryUnited States
CityChicago, IL
Period7/14/087/14/08

Keywords

  • Dynamic pricing
  • Minimax regret
  • Pricebots

ASJC Scopus subject areas

  • Management Information Systems
  • Control and Systems Engineering
  • Business and International Management
  • Information Systems
  • Modeling and Simulation
  • Information Systems and Management

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  • Cite this

    Jumadinova, J., & Dasgupta, P. (2010). Multi-attribute regret-based dynamic pricing. In Agent-Mediated Electronic Commerce and Trading Agent Design and Analysis - AAMAS Workshop, AMEC 2008, and AAAI Workshop, TADA 2008, Revised Selected Papers (pp. 73-87). (Lecture Notes in Business Information Processing; Vol. 44 LNBIP). Springer Verlag. https://doi.org/10.1007/978-3-642-15237-5_6