Pricing Decision

Pricing decisions, the process of setting optimal prices for goods or services, are a central focus of ongoing research, aiming to maximize revenue and satisfy various stakeholders. Current research emphasizes dynamic pricing strategies, leveraging machine learning models like combinatorial multi-armed bandits and Stackelberg games, often incorporating contextual information (e.g., customer characteristics, product features, online reviews) to personalize pricing and improve prediction accuracy. These advancements have significant implications for various industries, including e-commerce, ride-hailing, and the emerging market of large language model services, enabling more efficient resource allocation and revenue optimization.