Fall 2015 Seminar Series

DATE: 11/19/15
LOCATION: E51-315
TIME: 4:15pm
Reception immediately following

SPEAKER:
David Simchi-Levi

TITLE
Applying Machine Learning in Online Revenue Management

ABSTRACT
In a dynamic pricing problem where the demand function is unknown a priori, price experimentation can be used for demand learning. In practice, however, online sellers are faced with a few business constraints, including the inability to conduct extensive experimentation, limited inventory and high demand uncertainty. In this talk we discuss models and algorithms that combine machine learning and price optimization that significantly improve revenue. We report results from live implementations at companies such as Rue La La, Groupon and a large European Airline carrier.