What question did this study set out to answer?

This research aims to develop a dynamic pricing model for the e-commerce industry that maximizes profitability using clustering and game theory.

June 17, 2026Open Access

A Dynamic Pricing Model Based on Clustering Algorithms and Game Theory in the E-commerce Industry

View Full Paper

Ask AI

Bookmark

This research aims to develop a dynamic pricing model for the e-commerce industry that maximizes profitability using clustering and game theory.
Utilized the K-Means clustering algorithm to segment customers based on Recency, Frequency, Monetary (RFM) metrics.
Applied non-cooperative game theory, specifically the Bertrand game, to analyze pricing dynamics among competing firms.
Computed Nash Equilibrium prices for each customer segment to determine optimal pricing strategies.
Demonstrated a 14.6% increase in average revenue compared to static pricing strategies.
Showed effectiveness of the model in adapting to market competitiveness based on customer segmentation.
Validated model's reproducibility through implementation in Python.

No takes yet. Share an insight, caveat, or question.

Novel framework uses clustering and game theory to enhance pricing strategies in e-commerce, improving profits.

Đào Hoàng Dũng (2026) studied this question.

View Full Paper

Ask AI

Bookmark