TY - GEN
T1 - Enhancing Sparse Data Performance in E-Commerce Dynamic Pricing with Reinforcement Learning and Pre-Trained Learning
AU - Liu, Yuchen
AU - Man, Ka Lok
AU - Li, Gangmin
AU - Payne, Terry
AU - Yue, Yong
N1 - Publisher Copyright:
© 2023 IEEE.
PY - 2023
Y1 - 2023
N2 - 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.
AB - 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.
KW - Clustering
KW - Dynamic Pricing
KW - K-means
KW - Markov decision process
KW - Price elasticity of demand
KW - Reinforcement Learning
KW - Sarsa
UR - http://www.scopus.com/inward/record.url?scp=85175401537&partnerID=8YFLogxK
U2 - 10.1109/PlatCon60102.2023.10255211
DO - 10.1109/PlatCon60102.2023.10255211
M3 - Conference Proceeding
AN - SCOPUS:85175401537
T3 - 2023 International Conference on Platform Technology and Service, PlatCon 2023 - Proceedings
SP - 39
EP - 42
BT - 2023 International Conference on Platform Technology and Service, PlatCon 2023 - Proceedings
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 9th International Conference on Platform Technology and Service, PlatCon 2023
Y2 - 16 August 2023 through 18 August 2023
ER -