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Crafting AI
since 2017
#LLM
Dynamic Pricing with RL: Balancing Margins & Profit
A from-scratch RL pricing engine, a simulated population of psychologically driven shoppers, and the training journey that eventually beat a hand-tuned heuristic engine. Introduction TL;DR — We trained a recurrent PPO agent to set grocery discounts in a simulated market of psychologically distinct shoppers. Rewarded on nothing but immediate margin, it learned to manage price […]