An e-commerce dynamic pricing strategy for C2C and B2C modes

With the development of Internet, more and more firms adopt dynamic pricing as a valid method to maximize their profit, especially, when the demand is uncertainty. But on the other hand, the consumers become cleverer than before. Customers behave strategically and weigh their payoff of immediate purchase against the expected payoff of delaying their purchases. In this paper, we use a dynamic pricing model for e-commerce based on data mining into the pricing mechanisms of TaoBao, and discuss the application of the model in C2C and B2C modes.