International Business Machines Corporation
OPTIMAL PRICING ITERATION VIA SUB-COMPONENT ANALYSIS

Abstract:

In an approach for determining an optimal price for a product via a sub-component analysis, a processor determines a similarity weightage for each similar product to a product based on specifications and ratings for each similar product. A processor determines a price for each subcomponent of the product based on a base price of the respective subcomponent, a cost for work required to integrate the respective subcomponent into the product, and intellectual property and licensing costs associated with the respective subcomponent. A processor calculates a price prediction for the product by summing up the price for each subcomponent. A processor determines an optimized price prediction for the product based on integrating the similarity weightage for each similar product with the price prediction for the product in an ensemble model.