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Customer Inertia and Price Insensitivity Simulation

Overview

This project aims to model customer inertia and price insensitivity in subscription-based industries. The goal is to develop an optimal pricing strategy using reinforcement learning.

Objectives

  1. Conduct a literature review on customer inertia and price insensitivity.
  2. Develop a mathematical model based on the literature.
  3. Implement the model in a reinforcement learning environment.
  4. Train and evaluate the model to determine optimal pricing strategies.

Directories and Files

  • /src/: Main source directory containing all the code.

    • /models/: Contains mathematical models related to the project.

      • market_model.py: Implements the calculate_market_share function and other relevant models.
    • /env/: Contains the environment setup for reinforcement learning.

      • inertia_env.py: Implements the InertiaEnv class and related logic.
    • /training/: Contains scripts for training the model.

      • train.py: Handles the training process and execution of the reinforcement learning model.
      • config.py: Contains configuration settings for training, such as hyperparameters.
    • /utils/: Contains utility functions for reuse across the project.

      • helpers.py: Includes helper functions for various tasks.
    • main.py: The main entry point for running the simulation or training.

  • /data/: Directory for storing data-related files.

    • results/: Stores results from training or simulations.
    • logs/: Stores log files for tracking the training process.
  • /tests/: Directory for unit tests.

    • test_market_model.py: Tests for functions in market_model.py.
    • test_inertia_env.py: Tests for the InertiaEnv class.
    • test_training.py: Tests for training scripts.
  • requirements.txt: Lists all dependencies required for the project.

  • README.md: Provides an overview of the project.

  • .gitignore: Specifies files and directories to be ignored by version control.

  • RL.ipynb: Jacob's initial reinforcement learning for customer inertia model.

note: I will likely be using RL.py to run the simulation because Jupyter is very computationally expensive for my computer.

Literature Sources

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