Implementation of AI Dynamic Pricing and Optimization
Dynamic pricing — ML system that changes prices in real-time based on demand, competition, inventory and buyer behavior. Uber Surge Pricing, airline tickets, e-commerce — everywhere prices driven by model. Correctly implemented system increases revenue 5-15% and margin 3-8%.
Demand Elasticity Model
Optimal price maximizes revenue or profit depending on business objectives. A/B test should last minimum 4-6 weeks for stable results. Segmentation: 20% users in control (fixed prices), 80% in test. When launching: start with ±5% from base price, gradually expand range.







