Work detail

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:
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).

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