# US 11,443,335 B2 · Model-based deep reinforcement learning for dynamic pricing in an online ride-hailing platform

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- Number: US 11,443,335 B2
- Document ID: US11443335B2
- Status: Granted
- Kind: B2
- Application number: 16/720,753
- Filed: 2019-12-19
- Published: 2021-06-24
- Granted: 2022-09-13
- Earliest claimed: 2019-12-19
- Assignees: Beijing Didi Infinity Technology and Development Co., Ltd.
- Applicants: Beijing DiDi Infinity Technology and Development Co., Ltd.
- Inventors: Xiaocheng Tang
- Web page: https://patentgrep.com/patent/US11443335B2

## CPC

- G06Q 30/0206: {Price or cost determination based on market factors}
- G06N 3/006: based on simulated virtual individual or collective life forms, e.g. social simulations or particle swarm optimisation [PSO]
- G06N 3/044: Recurrent networks, e.g. Hopfield networks
- G06N 3/0442: characterised by memory or gating, e.g. long short-term memory [LSTM] or gated recurrent units [GRU]
- G06N 3/045: Combinations of networks
- G06N 3/0464: Convolutional networks [CNN, ConvNet]
- G06N 3/047: Probabilistic or stochastic networks
- G06N 3/0475: Generative networks
- G06N 3/08: Learning methods
- G06N 3/092: Reinforcement learning
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06N: COMPUTING ARRANGEMENTS BASED ON SPECIFIC COMPUTATIONAL MODELS

## Abstract

Dynamic pricing may be applied in an online ride-hailing platform. Information may be obtained. The information may include a set of pricing candidates and an initial status of a ride-hailing platform. The set of pricing candidates may be updated based on the initial status of the ride-hailing platform to minimize a cross-entropy between the set of pricing candidates and a target pricing policy that maximizes a total income of the ride-hailing platform. A price for at least one current trip request on the ride-hailing platform may be generated based on the updated set of pricing candidates.

## Claims

### Claim 1

A computer-implemented method for dynamic pricing, comprising:
training a reinforcement learning (RL) model in a simulation of a ride-hailing platform to predict a future state of the simulation based on a previous state of the simulation and a previous pricing action, wherein the training comprises minimizing a divergence between the predicted future state of the simulation and an observed futured state of the simulation, and the simulation is an offline version of the ride-hailing platform;
obtaining information comprising a set of pricing candidates and an initial status of the ride-hailing platform, wherein the initial status comprises a number of available drivers and a number of trip requests from passengers of the ride-hailing platform;
updating the set of pricing candidates based on the initial status of the ride-hailing platform to minimize a cross-entropy between the set of pricing candidates and a target pricing policy that maximizes a total income of the ride-hailing platform, wherein the updating comprises:
inputting the obtained information into the trained RL model;
obtaining a cumulative reward from the trained RL model for each pricing candidate in the set of pricing candidates based on the initial status of the ride-hailing platform;
obtaining a set of top pricing candidates comprising one or more pricing candidates with the highest cumulative rewards; and
updating the set of pricing candidates based on the set of top pricing candidates; and
generating a price for at least one current trip request on the ride-hailing platform based on the updated set of pricing candidates;
collecting an observed status of the ride-hailing platform after the generated price is deployed online;
retraining the RL model to reach a convergence between the prediction of the future status of the ride-hailing platform and the observed status of the ride-hailing platform.

### Claim 2 (depends on 1)

The method of claim 1, wherein the initial status of the ride-hailing platform further comprises a status of at least one origin-destination (OD) pair associated with an origin grid region and a destination grid region.

### Claim 3 (depends on 2)

The method of claim 2, wherein the status of the at least one OD pair comprises: a running estimate of a number of created orders, a number of accepted orders at a set of price increment, a number of finished orders at the set of price increment, and a number of canceled orders due to time running out.

### Claim 4 (depends on 1)

The method of claim 1, wherein the set of pricing candidates comprise a plurality of historical pricing sequences sampled from a set of historical pricing sequences.

### Claim 5 (depends on 1)

The method of claim 1, wherein the set of pricing candidates comprise a plurality of randomly generated pricing sequences.

### Claim 6 (depends on 1)

The method of claim 1, wherein obtaining the cumulative reward from the trained RL model comprises:
obtaining an initial state of the simulation of the ride-hailing platform based on the initial status of the ride-hailing platform;
obtaining a set of future states of the simulation of the ride-hailing platform based on the set of pricing candidates, the initial status of the ride-hailing platform, and the initial state of the simulation of the ride-hailing platform; and
generating the cumulative reward based on the set of future states of the simulation of the ride-hailing platform.

### Claim 7 (depends on 6)

The method of claim 6, wherein generating the cumulative reward based on the set of future states of the simulation of the ride-hailing platform comprises summing a state reward for each state of the set of future states of the simulation of the ride-hailing platform.

### Claim 8 (depends on 7)

The method of claim 7, wherein the trained RL model comprises:
a transition neural network configured for determining a prediction of each future state of the simulation of the ride-hailing platform based on a previous state of the simulation of the ride-hailing platform and a previous pricing action;
an observation neural network configured for determining a set of future observations of the simulation of the ride-hailing platform based on each future state of a simulation of the ride-hailing platform;
a state neural network configured for determining each future state of the simulation of the ride-hailing platform based on each future observation of the simulation of the ride-hailing platform; and
a reward neural network configured for determining each state reward based on each future state of the simulation of the ride-hailing platform.

### Claim 9 (depends on 8)

The method of claim 8, wherein the training further comprises maximizing a predicted accumulative reward.

### Claim 10 (depends on 7)

The method of claim 7, wherein the trained RL model comprises:
a recurrent neural network configured for determining a set of recurrent states of the simulation of the ride-hailing platform based on a set of pervious recurrent states of the simulation of the ride-hailing platform, a set of previous states of the simulation of the ride-hailing platform, and a set of previous pricing actions of the simulation of the ride-hailing platform;
a transition neural network configured for determining a prediction of each future state of the simulation of the ride-hailing platform based on each recurrent state of the simulation of the ride-hailing platform;
an observation neural network configured for determining a set of future observations of the simulation of the ride-hailing platform based on each recurrent state of the simulation of the ride-hailing platform and each future state of the simulation of the ride-hailing platform;
a state neural network configured for determining each future state of the simulation of the ride-hailing platform based on a set of previous observations the simulation of the ride-hailing platform and the set of previous pricing actions; and
a reward neural network configured for determining each state reward based on each recurrent state of the simulation of the ride-hailing platform and each future state of the simulation of the ride-hailing platform.

### Claim 11 (depends on 10)

The method of claim 10, wherein the training further comprises: maximizing a data log-likelihood of obtaining each future observation and each state reward.

### Claim 12 (depends on 1)

The method of claim 1, wherein generating the price for the at least one current trip request comprises generating a pricing multiplier for multiplying with a base price of the at least one current trip request.

### Claim 13

A system for dynamic pricing, comprising one or more processors and one or more non-transitory computer-readable memories coupled to the one or more processors and configured with instructions executable by the one or more processors to cause the system to perform operations comprising:
training a reinforcement learning (RL) model in a simulation of a ride-hailing platform to predict a future state of the simulation based on a previous state of the simulation and a previous pricing action, wherein the training comprises minimizing a divergence between the predicted future state of the simulation and an observed futured state of the simulation;
obtaining information comprising a set of pricing candidates and an initial status of the ride-hailing platform, wherein the initial status comprises a number of available drivers and a number of trip requests from passengers of the ride-hailing platform;
updating the set of pricing candidates based on the initial status of the ride-hailing platform to minimize a cross-entropy between the set of pricing candidates and a target pricing policy that maximizes a total income of the ride-hailing platform, wherein the updating comprises:
inputting the obtained information into the trained RL model;
obtaining a cumulative reward from the trained RL model for each pricing candidate in the set of pricing candidates based on the initial status of the ride-hailing platform;
obtaining a set of top pricing candidates comprising one or more pricing candidates with the highest cumulative rewards; and
updating the set of pricing candidates based on the set of top pricing candidates; and
generating a price for at least one current trip request on the ride-hailing platform based on the updated set of pricing candidates;
collecting an observed status of the ride-hailing platform after the generated price is deployed;
retraining the RL model to reach a convergence between the prediction of the future status of the ride-hailing platform and the observed status of the ride-hailing platform.

### Claim 14 (depends on 13)

The system of claim 13, wherein obtaining the cumulative reward from the trained RL model comprises:
obtaining an initial state of the simulation of the ride-hailing platform based on the initial status of the ride-hailing platform;
obtaining a set of future states of the simulation of the ride-hailing platform based on the set of pricing candidates, the initial status of the ride-hailing platform, and the initial state of the simulation of the ride-hailing platform; and
generating the cumulative reward based on the set of future states of the simulation of the ride-hailing platform.

### Claim 15 (depends on 14)

The system of claim 14, wherein generating the cumulative reward based on the set of future states of the simulation of the ride-hailing platform comprises summing a state reward for each state of the set of future states of the simulation of the ride-hailing platform.

### Claim 16

A non-transitory computer-readable storage medium configured with instructions executable by one or more processors to cause the one or more processors to perform operations comprising:
training a reinforcement learning (RL) model in a simulation of a ride-hailing platform to predict a future state of the simulation based on a previous state of the simulation and a previous pricing action, wherein the training comprises minimizing a divergence between the predicted future state of the simulation and an observed futured state of the simulation;
obtaining information comprising a set of pricing candidates and an initial status of the ride-hailing platform, wherein the initial status comprises a number of available drivers and a number of trip requests from passengers of the ride-hailing platform;
updating the set of pricing candidates based on the initial status of the ride-hailing platform to minimize a cross-entropy between the set of pricing candidates and a target pricing policy that maximizes a total income of the ride-hailing platform, wherein the updating comprises:
inputting the obtained information into the trained RL model;
obtaining a cumulative reward from the trained RL model for each pricing candidate in the set of pricing candidates based on the initial status of the ride-hailing platform;
obtaining a set of top pricing candidates comprising one or more pricing candidates with the highest cumulative rewards; and
updating the set of pricing candidates based on the set of top pricing candidates; and
generating a price for at least one current trip request on the ride-hailing platform based on the updated set of pricing candidates;
collecting an observed status of the ride-hailing platform after the generated price is deployed;
retraining the RL model to reach a convergence between the prediction of the future status of the ride-hailing platform and the observed status of the ride-hailing platform.
