In this contributed article, Sylvain Rougemaille PhD, Price Optimizer Product Manager, and Gabriel Smith, Chief Evangelist and Vice President of Innovation, at Pricefx, discuss how AI as applied to pricing must be transparent, defensible and pragmatic with proven ways to help sales win more business and increase deal size. It is also not a “one size fits all” problem, so the models must reflect the insight of the management team in order to be most effective.
How to Produce Cleaner Data for Robust Pricing
June 19, 2020 by 1 Comment
In this contributed article by MIT Sloan School of Management Prof. Negin Golrezaei, found that there are ways to limit price manipulation. The key is the pricing algorithm. Instead of using bids to directly set prices, a prominent group of researchers designed an algorithm that uses censored bids– in this case a binary signal – to indicate whether the buyer wins in the prior auction or not.
