Demand equilibrium based pricing
AssigneeCapital One Services, LLC
InventorsRay Cheng, Jennifer Kwok, Xiaoguang Zhu
Life of this patent
Estimating the term…
Abstract
Disclosed aspects pertain to demand-equilibrium-based pricing. Transaction data associated with a merchant can be utilized to generate and train a pricing model. The pricing model can be invoked to determine a pricing schedule for a set of items offered by the merchant. The pricing schedule can set prices of items based on the time of day and the transaction rate of the merchant. The pricing schedule can be implemented with the merchant through a digital display. The pricing schedule can also be updated such that prices for the items offered by the merchant can change based on the time of day to achieve a target transaction rate through the merchant's business hours.
Claims20
A system, comprising:
- a processor coupled to a memory that includes instructions that, when executed by the processor, cause the processor to:
- request historical transaction data of a merchant from a financial institution database;
- compute a historical transaction rate from the historical transaction data;
- generate a pricing model based on the historical transaction data and historical transaction rate that correlates item price with the historical transaction rate;
- determine a current transaction rate from real-time transaction data;
- invoke the pricing model with a current pricing schedule and the current transaction rate to produce an updated pricing schedule for the merchant that adjusts one or more prices to achieve a predetermined target transaction rate;
- and
- implement the updated pricing schedule with the merchant on a merchant computing device.
A method, comprising:
- executing, on a processor, instructions that cause the processor to perform operations, the operations comprising:
- requesting historical transaction data of a merchant from a financial institution database;
- computing a historical transaction rate from the historical transaction data;
- generating a pricing model based on the historical transaction data and historical transaction rate that correlates item price with the historical transaction rate;
- determining a current transaction rate from real-time transaction data;
- invoke the pricing model with a current pricing schedule and the current transaction rate to produce an updated pricing schedule for the merchant that adjusts one or more prices to achieve a predetermined target transaction rate;
- and
- implementing the updated pricing schedule with the merchant on a merchant computing device.
A computer-implemented method, comprising:
- determining a current transaction rate from real-time transaction data of a merchant;
- comparing the current transaction rate with a target transaction rate;
- executing a pricing model with a current pricing schedule and a current transaction rates as input to update the pricing schedule for the merchant by adjusting one or more prices to achieve a predetermined target transaction rate, wherein the pricing model correlates item price with historical transaction rates and execution of the pricing model is triggered when a result of the comparing satisfies a threshold difference;
- and
- implementing the pricing schedule with the merchant on a merchant computing device.
Dependencies are inferred from the claim text.