Dynamic Pricing with Demand Learning Emerging Topics and State of the Art

Determining the right price is a fundamental business problem that can be addressed by data-driven methods. In this chapter, we discuss several pricing policies that learn the optimal price from accumulating sales data, both in parametric and nonparametric models, and both for single-product and multiple product settings. We also discuss possible future directions for research: product differentiation, online marketplaces, and Brownian approximations.