IIMB Management Review

Journal of Indian Institute of Management Bangalore

Multi-Agent Learning in Dynamic Pricing Games of Service Markets

Prof. Diatha Krishna Sundar and K Ravikumar
2003
Working Paper No
210
Body

We study price dynamics in a service market environment where identical service providers dynamically reset their prices to price discriminate informed and uninformed consumers. A semi-Markovian game model for dynamic pricing is developed and a new multi-time scale actor-critic algorithm is proposed for multi-agent reinforcement learning. Also, experimental results on convergence to a Nash equilibrium are presented.

Key words
Dynamic Pricing
WP_IIMB_210.pdf (369.95 KB)

Multi-Agent Learning in Dynamic Pricing Games of Service Markets

Author(s) Name: Prof. Diatha Krishna Sundar and K Ravikumar, 2003
Working Paper No : 210
Abstract:

We study price dynamics in a service market environment where identical service providers dynamically reset their prices to price discriminate informed and uninformed consumers. A semi-Markovian game model for dynamic pricing is developed and a new multi-time scale actor-critic algorithm is proposed for multi-agent reinforcement learning. Also, experimental results on convergence to a Nash equilibrium are presented.

Keywords: Dynamic Pricing
WP_IIMB_210.pdf (369.95 KB)