APPLICATION OF GAME THEORY FOR DYNAMIC PRICING IN E-COMMERCE
Game theory is a branch of mathematics that studies models of strategic interaction between rational agents, playing an important role in various fields of science. Dynamic pricing is a flexible pricing strategy that adjusts to changes in market demand in real-time to optimize revenue. Dynamic pr...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/82338 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Game theory is a branch of mathematics that studies models of strategic interaction
between rational agents, playing an important role in various fields of science.
Dynamic pricing is a flexible pricing strategy that adjusts to changes in market
demand in real-time to optimize revenue. Dynamic pricing in e-commerce is a
process based on choices made by sellers based on various factors. Therefore, it can
be viewed as an interaction between rational agents making decisions, with these
rational agents being the sellers. The interaction between sellers who set, lower,
or raise prices and buyers who decide to buy now, wait, or switch to competitors
reflects the dynamic strategy game. Dynamic pricing algorithms analyze market
demand, supply in the market, and competitor prices to determine the optimal
price. This study aims to find a way to define dynamic pricing in e-commerce
using concepts found in game theory from the perspective of pricing by sellers.
Additionally, it will describe game theory concepts that can illustrate the interaction
between sellers and buyers in e-commerce.
Keywords: game theory, dynamic pricing, e- |
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