The New Era of Dynamic Pricing: Synergizing Supervised Learning and Quadratic Programming
Optimization and Control
2024-02-26 v1 Machine Learning
Abstract
In this paper, we explore a novel combination of supervised learning and quadratic programming to refine dynamic pricing models in the car rental industry. We utilize dynamic modeling of price elasticity, informed by ordinary least squares (OLS) metrics such as p-values, homoscedasticity, error normality. These metrics, when their underlying assumptions hold, are integral in guiding a quadratic programming agent. The program is tasked with optimizing margin for a given finite set target.
Keywords
Cite
@article{arxiv.2402.14844,
title = {The New Era of Dynamic Pricing: Synergizing Supervised Learning and Quadratic Programming},
author = {Gustavo Bramao and Ilia Tarygin},
journal= {arXiv preprint arXiv:2402.14844},
year = {2024}
}