Estimating Demand for Dynamic Pricing in Electronic Markets

J Cartlidge, Steve Phelps

Research output: Contribution to journalArticle (Academic Journal)peer-review

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Economic theory suggests sellers can increase revenue through dynamic pricing; selling identical goods or services at different prices. However, such discrimination requires knowledge of the maximum price that each consumer is willing to pay; information that is often unavailable. Fortunately, electronic markets offer a solution; generating vast quantities of transaction data that, if used intelligently, enable consumer behaviour to be modelled and predicted. Using eBay as an exemplar market, we introduce a model for dynamic pricing that uses a statistical method for deriving the structure of demand from temporal bidding data. This work is a tentative first step of a wider research program to discover a practical methodology for automatically generating dynamic pricing models for the provision of cloud computing services; a pertinent problem with widespread commercial and theoretical interest.
Translated title of the contributionEstimating Demand for Dynamic Pricing in Electronic Markets
Original languageEnglish
Pages (from-to)128 - 133
Number of pages6
JournalGSTF International Journal on Computing (JoC)
Issue number2
Publication statusPublished - Feb 2011

Bibliographical note

Publisher: GSTF. Permission granted for open access


  • cloud computing
  • dynamic pricing
  • demand estimation
  • differential pricing

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