research-article

A Kalman filter approach to analyze multivariate hedonics pricing model in dynamic supply chain markets

Authors:

Wolfgang Ketter,

Gianfranco Lucchese,

John CollinsAuthors Info & Claims

ICEC '10: Proceedings of the 12th International Conference on Electronic Commerce: Roadmap for the Future of Electronic Business

Pages 58 - 67

https://doi.org/10.1145/2389376.2389385

Published: 02 August 2010 Publication History

Abstract

Accurate forecasting of market price developments is essential in achieving superior market performance. Especially in oligopolistic markets for durable consumer products a robust understanding of selling prices is important, as it drives pricing behavior as well as procurement, inventory and production decisions. Moreover, a supply chain perspective is indispensable for pricing forecasts since companies not only compete for product sales but also for limited resources. This paper explores the use of dynamic multivariate hedonics-based pricing models that explicitly model selling prices with the market valuation of constituting parts. The model is applied to TAC SCM, a supply-chain trading agent competition. To find unknown component prices series we apply the Kalman filter technique to smooth and forecast implicit prices using the EM algorithm. Finally, we present results of our analysis to establish the viability of this method.

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Cited By

Lucchese GKetter Wvan Dalen JCollins J(2011)Forecasting prices in dynamic heterogeneous product markets using multivariate prediction methodsProceedings of the 13th International Conference on Electronic Commerce10.1145/2378104.2378130(1-10)Online publication date: 3-Aug-2011
https://dl.acm.org/doi/10.1145/2378104.2378130

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cover image ACM Other conferences

ICEC '10: Proceedings of the 12th International Conference on Electronic Commerce: Roadmap for the Future of Electronic Business

August 2010

215 pages

ISBN:9781450314275

DOI:10.1145/2389376

Conference Chairs:
Tung Bui
University of Hawaii at Manoa
,
Matthias Jarke
RWTH, Technical University of Aachen
,
Program Chairs:
Vasant Dhar
New York University
,
Kai Lung Hui
Hong Kong University of Science and Technology
,
Helmut Krcmar
Technical University of Munich

Copyright © 2010 ACM.

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Association for Computing Machinery

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Publication History

Published: 02 August 2010

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ICEC '10

ICEC '10: 12th International Conference on Electronic Commerce

August 2 - 4, 2010

Hawaii, Honolulu, USA

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Cited By

Lucchese GKetter Wvan Dalen JCollins J(2011)Forecasting prices in dynamic heterogeneous product markets using multivariate prediction methodsProceedings of the 13th International Conference on Electronic Commerce10.1145/2378104.2378130(1-10)Online publication date: 3-Aug-2011
https://dl.acm.org/doi/10.1145/2378104.2378130

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