Abstract: Every organisation faces a problem of setting the prices of products. The main aim of marketing strategy of an organisation is to attain marketing objectives and satisfy the targeted market. The marketing decisions affect the prices of products to a great extent. The topic of dynamic price optimization for the future of e-commerce has received a considerable amount of attention in recent years, from different scientific communities. This paper provide a brief introduction to the historical origins of quantitative research on pricing and demand estimation, point to different subfields in the area of dynamic pricing, and provide an in-depth overview of the available literature on dynamic pricing and learning. Our focus is on the operations research and management science literature, but we also discuss relevant contributions from marketing, economics, econometrics, and computer science. The topic of dynamic pricing and learning has received a considerable amount of attention in recent years, from different scientific communities. We survey these literature streams: we provide a brief introduction to the historical origins of quantitative research on pricing and Demand estimation, point to different subfields in the area of dynamic pricing, and provide an in-depth overview of the available literature on dynamic pricing and learning. Our focus is on the operations research and management science literature, but we also discuss relevant Contributions from marketing, economics, econometrics, and computer science. We discuss Relations with methodologically related research areas, and identify directions for future research.
Keywords: Dynamic Pricing, Demand Estimation; Learning, Optimization, Neural Network.