An application of EDA and GA to dynamic pricing

E-commerce has transformed the way firms develop their pricing strategies, producing shift away from fixed pricing to dynamic pricing. In this paper, we use two different Estimation of distribution algorithms (EDAs), a Genetic Algorithm (GA) and a Simulated Annealing (SA) algorithm for solving two different dynamic pricing models. Promising results were obtained for an EDA confirming its suitability for resource management in the proposed model. Our analysis gives interesting insights into the application of population based optimization techniques for dynamic pricing. Categories and Subject Descriptors I.2.8 [Artificial Intelligence]: Problem Solving, Control Methods, and Search ; G.3 [Probability and statistics]: Probabilistic algorithms, Stochastic processes General Terms Algorithms, Management, Performance, Design, Economics Keywords Estimation of Distribution Algorithms, Dynamic Pricing, Evolutionary Computation, Resource Management

• Type: Conference
• Year: 2007
• Where: GECCO
• Authors: Siddhartha Shakya, Fernando Oliveira, Gilbert Owusu
• Keywords: Distribution Algorithms, Different Dynamic Pricing, Dynamic Pricing, GECCO 2007