Dynamic pricing by hopfield neural network

The increase in the number of shopbots users in e-commerce has triggered flexibility of sellers in their pricing strategies. Sellers see the importance of automated price setting which provides efficient services to a large number of buyers who are using shopbots. This paper studies the characteristic of decreasing energy with time in a continuous model of a Hopfield neural network that is the decreasing of errors in the network with respect to time. The characteristic shows that it is possible to use Hopfield neural network to get the main factor of dynamic pricing; the least variable cost, from production function principles. The least variable cost is obtained by reducing or increasing the input combination factors, and then making the comparison of the network output with the desired output, where the difference between the network output and desired output will be decreasing in the same manner as in the Hopfield neural network energy. Hopfield neural network will simplify the rapid change of prices in e-commerce during transaction that depends on the demand quantity for demand sensitive model of pricing.