System of demand modeling and price calculation based on interpolated market price elasticity functions

A method comprising:

• calculating a plurality of target price-volume break points for a product, each of the price-volume break points includes a target selling quantity range and an associated price for the product;
• triggering a time window for which the plurality of price-volume break points will be offered;
• receiving, for each transaction of the product occurring during the time window and corresponding to a unique purchaser of the product, transaction information comprising a transacted quantity for the unique purchaser and a transacted price for the unique purchaser, wherein receiving the transaction information comprises processing a data flow of a plurality of electronic transactions of one or more retail networks, via one or more software or hardware modules integrated with point of sale systems or payment processing systems of the one or more retail networks, to detect and ingest transactions of the product;
• determining, for each received transaction, that the respective transaction is finalized or cleared for inclusion;
• updating a cumulative quantity of sales based on adding the transacted quantity for each received transaction to a current cumulative quantity of sales of the product during the time window;
• determining a current offered price-volume break point based on determining that a total cumulative quantity of sales during the time window is within a respective target selling quantity range;
• distributing, to the one or more retail networks for display via a point of sale system or electronic price tag of the one or more retail networks, updated values of the current cumulative quantity of sales and the current offered price-volume break point according to a defined update schedule that includes an introduced delay configured to prevent fraud and guarantee a correct unit sales count;
• after an expiration of the time window, generating redemptions to each unique purchaser of the product during the time window, each respective redemption based on a difference between the transacted price for the unique purchaser and a final price, wherein the final price is based on a final offered price-volume break point corresponding to the total cumulative quantity of sales at the expiration of the time window;
• transmitting, to each unique purchaser, the respective redemption, wherein the respective redemption refunds to each unique purchaser the difference between the transacted price for the unique purchaser and the final price;
• calculating an observed market price elasticity for each of the plurality of price-volume break points;
• interpolating a market price elasticity function based at least in part on the observed market price elasticities;
• and
• optimizing over the interpolated market price elasticity function to generate dynamic pricing rules, wherein the dynamic pricing rules are used to calculate updated price-volume break points for the product.

A system comprising:

• one or more processors;
• and
• at least one computer-readable storage medium comprising instructions stored thereon, which when executed by the one or more processors, cause the system to perform operations comprising:
• calculate a plurality of target price-volume break points for a product, each of the price-volume break points includes a target selling quantity range and an associated price for the product;
• trigger a time window for which the plurality of price-volume break points will be offered;
• receive, for each transaction of the product occurring during the time window and corresponding to a unique purchaser of the product, transaction information comprising a transacted quantity for the unique purchaser and a transacted price for the unique purchaser, wherein receiving the transaction information comprises processing a data flow of a plurality of electronic transactions of one or more retail networks, via one or more software or hardware modules integrated with point of sale systems or payment processing systems of the one or more retail networks, to detect and ingest transactions of the product;
• determine, for each received transaction, that the respective transaction is finalized or cleared for inclusion;
• update a cumulative quantity of sales based on adding the transacted quantity for each received transaction to a current cumulative quantity of sales of the product during the time window;
• determine a current offered price-volume break point based on determining that a total cumulative quantity of sales during the time window is within a respective target selling quantity range;
• distribute, to the one or more retail networks for display via a point of sale system or electronic price tag of the one or more retail networks, updated values of the current cumulative quantity of sales and the current offered price-volume break point according to a defined update schedule that includes an introduced delay configured to prevent fraud and guarantee a correct unit sales count;
• after an expiration of the time window, generate redemptions to each unique purchaser of the product during the time window, each respective redemption based on a difference between the transacted price for the unique purchaser and a final price, wherein the final price is based on a final offered price-volume break point corresponding to the total cumulative quantity of sales at the expiration of the time window;
• transmit, to each unique purchaser, the respective redemption, wherein the respective redemption refunds to each unique purchaser the difference between the transacted price for the unique purchaser and the final price;
• calculate an observed market price elasticity for each of the plurality of price-volume break points;
• interpolate a market price elasticity function based at least in part on the observed market price elasticities;
• and
• optimize over the interpolated market price elasticity function to generate dynamic pricing rules, wherein the dynamic pricing rules are used to calculate updated price-volume break points for the product.