17846148. DEMAND EQUILIBRIUM BASED PRICING simplified abstract (Capital One Services, LLC)

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DEMAND EQUILIBRIUM BASED PRICING

Organization Name

Capital One Services, LLC

Inventor(s)

Ray Cheng of Long Island CIty NY (US)

Jennifer Kwok of Brooklyn NY (US)

Xiaoguang Zhu of New York NY (US)

DEMAND EQUILIBRIUM BASED PRICING - A simplified explanation of the abstract

This abstract first appeared for US patent application 17846148 titled 'DEMAND EQUILIBRIUM BASED PRICING

Simplified Explanation

The patent application describes a demand-equilibrium-based pricing system that uses transaction data to determine the pricing schedule for a merchant's items. Here are the key points:

  • The system utilizes transaction data to generate and train a pricing model.
  • The pricing model is used to determine a pricing schedule for the merchant's items.
  • The pricing schedule sets prices based on the time of day and the transaction rate of the merchant.
  • The pricing schedule can be displayed digitally at the merchant's location.
  • The pricing schedule can be updated to achieve a target transaction rate throughout the merchant's business hours.

Potential Applications

This technology can be applied in various industries and scenarios, including:

  • Retail: Retailers can use this system to dynamically adjust prices based on demand and transaction rates, optimizing revenue and customer satisfaction.
  • Hospitality: Hotels and restaurants can implement this system to adjust prices for rooms, meals, and services based on demand fluctuations throughout the day.
  • Transportation: Airlines, ride-sharing services, and public transportation can utilize this system to adjust fares based on demand and optimize capacity utilization.
  • Online marketplaces: E-commerce platforms can employ this system to dynamically adjust prices for products based on demand and transaction rates.

Problems Solved

The demand-equilibrium-based pricing system addresses the following problems:

  • Inefficient pricing: Traditional fixed pricing models may not accurately reflect demand and can result in missed revenue opportunities or dissatisfied customers.
  • Manual pricing updates: Manually adjusting prices based on demand can be time-consuming and prone to errors.
  • Suboptimal capacity utilization: Without dynamic pricing, businesses may struggle to optimize capacity utilization during peak and off-peak hours.

Benefits

Implementing this technology offers several benefits:

  • Revenue optimization: By adjusting prices based on demand, businesses can maximize revenue potential and profitability.
  • Improved customer satisfaction: Dynamic pricing ensures that prices are aligned with demand, providing customers with fair and competitive pricing.
  • Efficient pricing updates: The system automates the pricing update process, saving time and reducing the risk of errors.
  • Capacity utilization optimization: Businesses can better manage capacity during peak and off-peak hours, improving operational efficiency.


Original Abstract Submitted

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.

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