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Record W2056039058 · doi:10.1080/07474940701620808

Dynamic Pricing with a Poisson Bandit Model

2007· article· en· W2056039058 on OpenAlexaff
Xikui Wang

Bibliographic record

VenueSequential Analysis · 2007
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicConsumer Market Behavior and Pricing
Canadian institutionsUniversity of Manitoba
FundersXiangtan University
KeywordsOptimal stoppingDynamic pricingDynamic programmingStochastic gamePoisson distributionMathematical optimizationRevenue managementFunction (biology)Time horizonMathematicsDemand curveMathematical economicsRevenueIndex (typography)EconomicsComputer scienceMicroeconomics

Abstract

fetched live from OpenAlex

Suppose that one of two prices for the same product must be posted every day. Under each price, the demand function is described by a compound Poisson process with possibly unknown parameters. The objective is to sequentially post daily prices so as to maximize the total expected, possibly discounted gross revenue over a finite pricing horizon. To effectively balance between understanding the demand function and achieving economic revenues, we formulate the optimal pricing problem with a bandit model and characterize the solution by means of stochastic dynamic programming. When there is only one unknown demand function in the model, the optimal pricing decision is determined by a pricing index, whose limit is the Gittins index. These index values also demonstrate that it may be worth sacrificing some immediate payoff for the benefit of information gathering and better-informed decisions in the future. Moreover, the optimal stopping solution is derived and the myopic strategy is shown not to be optimal in general. When both demand functions are unknown, a version of the play-the-winner pricing rule is derived.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.004
metaresearch head score (Gemma)0.012
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.014
Threshold uncertainty score0.030

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0040.012
Meta-epidemiology (narrow)0.0010.001
Meta-epidemiology (broad)0.0030.001
Bibliometrics0.0010.001
Science and technology studies0.0010.002
Scholarly communication0.0040.003
Open science0.0020.001
Research integrity0.0030.003
Insufficient payload (model declined to judge)0.0090.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.014
GPT teacher head0.246
Teacher spread0.232 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations8
Published2007
Admission routes1
Has abstractyes

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