TY - GEN
T1 - A kalman filter approach to analyze multivariate hedonics pricing model in dynamic supply chain markets
AU - Van Dalen, Jan
AU - Ketter, Wolfgang
AU - Lucchese, Gianfranco
AU - Collins, John
PY - 2010/8
Y1 - 2010/8
N2 - Accurate forecasting of market price developments is essential in achieving superior market performance. Especially in oligopolistic markets for durable consumer products a robust understanding of selling prices is important, as it drives pricing behavior as well as procurement, inventory and production decisions. Moreover, a supply chain perspective is indispensable for pricing forecasts since companies not only compete for product sales but also for limited resources. This paper explores the use of dynamic multivariate hedonics-based pricing models that explicitly model selling prices with the market valuation of constituting parts. The model is applied to TAC SCM, a supply-chain trading agent competition. To find unknown component prices series we apply the Kalman filter technique to smooth and forecast implicit prices using the EM algorithm. Finally, we present results of our analysis to establish the viability of this method.
AB - Accurate forecasting of market price developments is essential in achieving superior market performance. Especially in oligopolistic markets for durable consumer products a robust understanding of selling prices is important, as it drives pricing behavior as well as procurement, inventory and production decisions. Moreover, a supply chain perspective is indispensable for pricing forecasts since companies not only compete for product sales but also for limited resources. This paper explores the use of dynamic multivariate hedonics-based pricing models that explicitly model selling prices with the market valuation of constituting parts. The model is applied to TAC SCM, a supply-chain trading agent competition. To find unknown component prices series we apply the Kalman filter technique to smooth and forecast implicit prices using the EM algorithm. Finally, we present results of our analysis to establish the viability of this method.
UR - http://www.scopus.com/inward/record.url?scp=84870279047&partnerID=8YFLogxK
U2 - 10.1145/2389376.2389385
DO - 10.1145/2389376.2389385
M3 - Conference proceeding
AN - SCOPUS:84870279047
SN - 9781450314275
T3 - ACM International Conference Proceeding Series
SP - 58
EP - 67
BT - ICEC 2010 - Proceedings of the 12th International Conference on Electronic Commerce
T2 - 12th International Conference on Electronic Commerce, ICEC 2010
Y2 - 2 August 2010 through 4 August 2010
ER -