Name
Abstract | ||
|---|---|---|
Data-driven pricing strategies are becoming increasingly common, where customers are offered a personalized price based on features that are predictive of their valuation of a product. It is desirable for this pricing policy to be simple and interpretable, so it can be verified, checked for fairness, and easily implemented. However, efforts to incorporate machine learning into a pricing framework often lead to complex pricing policies which are not interpretable, resulting in slow adoption in practice. We present a customized, prescriptive tree-based algorithm that distills knowledge from a complex black-box machine learning algorithm, segments customers with similar valuations and prescribes prices in such a way that maximizes revenue while maintaining interpretability. We quantify the regret of a resulting policy and demonstrate its efficacy in applications with both synthetic and real-world datasets. |
Year | Venue | DocType |
|---|---|---|
2021 | INTERNATIONAL CONFERENCE ON MACHINE LEARNING, VOL 139 | Conference |
Volume | ISSN | Citations |
139 | 2640-3498 | 0 |
PageRank | References | Authors |
0.34 | 0 | 3 |
Name | Order | Citations | PageRank |
|---|---|---|---|
| Max Biggs | 1 | 0 | 0.68 |
| SUN Wei | 2 | 247 | 26.63 |
| Markus Ettl | 3 | 0 | 0.68 |