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Visualising Dynamic Pricing modelling to build insights
The nice thing about Dynamic Pricing is that it offers a level of explainability. The demo below shows an experiment lasting two weeks in which we are training a dynamic pricing model that is interacting with a fictitious market.
For this experiment, 100 data points (=potential clients being shown a price) were generated daily, based on the prices that were chosen by the model. The model is then retrained overnight on the daily that came in the day prior.
In a matter of a few days, the suggested prices start revolving around the optimal price which is indicated by the vertical dashed line - while at the same time exploring nearby prices still.
Video 1. A demo indicating the visual and explainable nature of Dynamic Pricing models.
Want to learn more? Please have a look at the blogpost which explains the characteristics of Dynamic Pricing modelling from a business perspective.