Ritangkar Dey
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Commerce Decisions

Dynamic Pricing Simulator

Rule-based pricing from demand, inventory, competitor and seasonality — bounded by margin and move-size guardrails.

DeterministicStrong Supporting WorkPricing rulesGuardrailsElasticity
INTERACTIVE DEMOhard-coded · synthetic data · runs in your browser

The Problem

Automated pricing is only acceptable when the business can see which guardrail stopped it from going too far.

How It Works

  1. Sum adjustments from demand change, days of supply and competitor gap, scaled by seasonality.
  2. Clamp the move to ±10%.
  3. Apply the margin floor and optional competitor ceiling, then estimate unit, revenue and stock-risk impact.

Technically Interesting

Constraints are applied in a fixed order and the response lists which one fired, so the output is a rationale rather than a number.

Why It Matters

Pricing logic needs governance. Guardrails and traceability matter more than model sophistication.

Scope & honesty. Coefficients are illustrative, not fitted to data.