[–] owlninja 8y ago ↗ Typo on your middle card FYI"Out ML algorithm will converge to a price that maximizes revenue, sales times price." [–] londons_explore 8y ago ↗ It also assumes the cost of providing service is zero.... [–] grandtour001 8y ago ↗ Good catch. It's aimed at software companies at the moment although it could just take into account marginal cost in the future
[–] londons_explore 8y ago ↗ It also assumes the cost of providing service is zero.... [–] grandtour001 8y ago ↗ Good catch. It's aimed at software companies at the moment although it could just take into account marginal cost in the future
[–] grandtour001 8y ago ↗ Good catch. It's aimed at software companies at the moment although it could just take into account marginal cost in the future
[–] dvdhnt 8y ago ↗ Don't use anything like this - it's morally bankrupt.If everyone who sold anything used tools like this to maximize revenue, we'd all be bled dry, even more than we are now.Protect your customers, remember they're your top stakeholder!Your goal should be to find a balance between meeting costs, providing affordable value to your customers, and generating a reasonable profit.Otherwise, you're part of the disease.WILDE.TWAIN. [–] londons_explore 8y ago ↗ I don't agree.The price which maximizes revenue isn't always the highest price.This API could equally suggest a lower price, bringing in more customers who get more utility of your service.In a good market with lots of competition, the best strategy for the seller also leads to the best result for the buyer.
[–] londons_explore 8y ago ↗ I don't agree.The price which maximizes revenue isn't always the highest price.This API could equally suggest a lower price, bringing in more customers who get more utility of your service.In a good market with lots of competition, the best strategy for the seller also leads to the best result for the buyer.
[–] londons_explore 8y ago ↗ This sounds like the multi-armed bandit problem...No need for fancy ML here - it's a thoroughly understood mathematical problem...Unless of course you're using parameters of the user (browser, purchase history, interests, favourite pet, etc.)...? [–] grandtour001 8y ago ↗ You're right although multi-armed bandit problem doesn't address all the problems in the real world. E.x. adding different slot machines (prices) intelligently, or discounting past data without using magic parameters
[–] grandtour001 8y ago ↗ You're right although multi-armed bandit problem doesn't address all the problems in the real world. E.x. adding different slot machines (prices) intelligently, or discounting past data without using magic parameters
7 comments
[ 0.19 ms ] story [ 24.6 ms ] thread"Out ML algorithm will converge to a price that maximizes revenue, sales times price."
If everyone who sold anything used tools like this to maximize revenue, we'd all be bled dry, even more than we are now.
Protect your customers, remember they're your top stakeholder!
Your goal should be to find a balance between meeting costs, providing affordable value to your customers, and generating a reasonable profit.
Otherwise, you're part of the disease.
WILDE.TWAIN.
The price which maximizes revenue isn't always the highest price.
This API could equally suggest a lower price, bringing in more customers who get more utility of your service.
In a good market with lots of competition, the best strategy for the seller also leads to the best result for the buyer.
No need for fancy ML here - it's a thoroughly understood mathematical problem...
Unless of course you're using parameters of the user (browser, purchase history, interests, favourite pet, etc.)...?