The New Era of Dynamic Pricing: Synergizing Supervised Learning and Quadratic Programming
arXiv:2402.14844v1
Originality Synthesis-oriented
AI Analysis
This is an incremental improvement for the car rental industry.
The paper tackles dynamic pricing in the car rental industry by combining supervised learning with quadratic programming, resulting in optimized margins for a finite set target.
In this paper, we explore a novel combination of supervised learning and quadratic programming to refine dynamic pricing models in the car rental industry. We utilize dynamic modeling of price elasticity, informed by ordinary least squares (OLS) metrics such as p-values, homoscedasticity, error normality. These metrics, when their underlying assumptions hold, are integral in guiding a quadratic programming agent. The program is tasked with optimizing margin for a given finite set target.