Price Elasticity

Price elasticity, the responsiveness of demand or supply to price changes, is a crucial concept across diverse fields, with research focusing on accurately predicting and optimizing this relationship for improved decision-making. Current research employs various machine learning models, including neural networks (e.g., UNets, GNNs), quadratic programming, and Bayesian methods, to address challenges like data sparsity, confounding factors, and the need for fairness in pricing strategies. Accurate price elasticity modeling has significant implications for optimizing pricing strategies in industries such as insurance, ride-hailing, and e-commerce, as well as for advancing scientific understanding in materials science and biomechanics through improved elasticity estimation techniques.