{"product_id":"data-driven-pricing-von-thibault-le-guen","title":"Data driven pricing","description":"\u003cp\u003eIn this book, we develop a pricing strategy that enables a firm to  learn the behavior of its customers as well as optimize its profit in a  monopolistic setting. The single product case as well as the multi  product case are considered under different parametric forms of  demand, whose parameters are unknown to the manager.  For the linear demand case in the single product setting, our main  contribution is an algorithm that guarantees almost sure  convergence of the estimated demand parameters to the true  parameters. Moreover, the pricing strategy is also asymptotically  optimal. Simulations are run to study the sensitivity to different  parameters.  Using our results on the single product case, we extend the  approach to the multi product case with linear demand. The pricing  strategy we introduce is easy to implement and guarantees not only  learning of the demand parameters but also maximization of the  profit. Finally, other parametric forms of the demand are  considered. A heuristic that can be used for many parametric forms  of the demand is introduced, and is shown to have good  performance in practice.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783843360708\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783843360708","offer_id":39497063596125,"sku":"9783843360708","price":59.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/6c5f0453-4265-45c1-9263-78913ff9a0c4.jpg?v=1770704900","url":"https:\/\/shop.autorenwelt.de\/products\/data-driven-pricing-von-thibault-le-guen","provider":"Autorenwelt Shop","version":"1.0","type":"link"}