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Enhancing sparse data performance in e-commerce dynamic pricing with reinforcement learning and pre-trained learning

  • Yuchen Liu
  • , Ka Lok Man
  • , Gangmin Li
  • , Terry R. Payne
  • , Yong Yue
  • Xi'an Jiaotong-Liverpool University
  • University of Liverpool

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

11 Citations (Scopus)

Abstract

This paper introduces a reinforcement learning-based framework designed to tackle dynamic pricing challenges in e-commerce. Prior research has predominantly concentrated on algorithm selection to enhance performance in dense data scenarios. However, many of these models fail to robustly address sparse data structures, such as low-traffic products, leading to the 'cold-start' problem [4]. Through numerical analysis, our framework offers innovative insights derived from the design of the reward function and integrates product clustering with pre-trained learning to mitigate this issue. As a result of this optimization, the performance of predictive models on sparse data is expected to see substantial improvement.
Original languageEnglish
Title of host publication2023 International Conference on Platform Technology and Service, PlatCon 2023 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages39-42
Number of pages4
ISBN (Electronic)9798350305999
ISBN (Print)9798350305999
DOIs
Publication statusPublished - 25 Sept 2023
Event2023 International Conference on Platform Technology and Service (PlatCon) - Busan
Duration: 25 Sept 2023 → …

Publication series

Name2023 International Conference on Platform Technology and Service, PlatCon 2023 - Proceedings

Conference

Conference2023 International Conference on Platform Technology and Service (PlatCon)
CityBusan
Period25/09/23 → …
Other2023 International Conference on Platform Technology and Service (PlatCon) (Busan)

Keywords

  • Clustering
  • Dynamic Pricing
  • K-means
  • Markov decision process
  • Price elasticity of demand
  • Reinforcement Learning
  • Sarsa

ASJC Scopus subject areas

  • Artificial Intelligence
  • Computer Networks and Communications
  • Computer Science Applications
  • Information Systems and Management
  • Safety, Risk, Reliability and Quality
  • Media Technology

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