Reinforcement Learning for Pricing Strategy Optimization

Elena Krasheninnikova Risk scoring & Pricing

Flipping a pancake is a complex move that humans need to learn through experimentation and repetition. So, how could a robot learn to flip a pancake? Let’s imagine that there is an robotized armed capable of performing the same moves as a human arm. The hand is holding a frying pan, and the dough is cooked and has the shape …

Pricing Strategy Optimization Considering Customer Sensitivity

Elena Krasheninnikova Risk scoring & Pricing

Setting a price for a given customer and product (i.e pricing) is a fundamental problem in the banking sector and is closely related to many financial products, such as insurance or credit scoring. While pricing problems can be solved with standard regression models like Generalized Lineal Models (GLM), a pricing strategy optimization deals with two main components: the pricing model …