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arXiv · 2402.14844

The New Era of Dynamic Pricing: Synergizing Supervised Learning and Quadratic Programming

Gustavo Bramao·Ilia Tarygin
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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.

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Gustavo Bramao, Ilia Tarygin. 2024-02-19. The New Era of Dynamic Pricing: Synergizing Supervised Learning and Quadratic Programming. https://arxiv.org/abs/2402.14844

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