A simulation based analysis of price elasticity of demand
| Author: | Bc. Michal Kubišta |
|---|---|
| Year: | 2020 - summer |
| Leaders: | PhDr. RNDr. Josef Stráský Ph.D. |
| Consultants: | |
| Work type: | Economic Theory Masters |
| Language: | English |
| Pages: | 75 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/213775/ |
| Abstract: | In this work, we describe a novel methodology to analyse the price elasticity of demand. This method combines an artificial neural network that serves as the model of the behaviour of the customers and a subsequent simulation based on this model. We present the validation of our approach using a real-world dataset obtained from an e-commerce retailer and demonstrate its advantages, notably the ability to estimate the elasticity in distinct price points and the inclusion of the complete pricing situations (not only product’s own price). |
