Machine Learning based Framework for Robust Price-Sensitivity Estimation with Application to Airline Pricing. (arXiv:2205.01875v1 [stat.ML])

We consider the problem of dynamic pricing of a product in the presence of
feature-dependent price sensitivity. Based on the Poisson semi-parametric
approach, we construct a flexible yet interpretable demand model where the
price related part is parametric while the remaining (nuisance) part of the
model is non-parametric and can be modeled via sophisticated ML techniques. The
estimation of price-sensitivity parameters of this model via direct one-stage
regression techniques may lead to biased estimates. We propose a two-stage
estimation methodology …

application arxiv framework learning machine machine learning ml price pricing