FULL TUTORIAL: Price Elasticity and Optimization in Python (feat. pyGAM)

Hey future Business Scientists, welcome back to my Business Science channel. This is Learning Lab 87 where I shared how I do Price Elasticity Modeling and Price Optimization in Python. This FULL TUTORIAL is JAMMED to the brim with value. I cover an in-depth Python Price Elasticity and Optimization workshop that covers exploratory analysis, modeling events, working with outliers, using generalized additive models (GAMs) with pyGAM, and more!

*** LIMITED TIME OFFER ***

Table of Contents
00:00 Introduction to Price Elasticity & Optimization in Python
01:22 Agenda: The 4 Things We Cover Today
03:09 Why listen to me (my background)
06:19 Python Price Optimization (FULL CODE TUTORIAL)
07:35 The VSCode Workshop Files
09:10 Part 1: Expectile GAM Primer
12:10 GAM Modeling: 1 Price-Demand Model with GAMs
16:36 Part 2: Price Elasticity Modeling and Optimization
19:40 Data Preparation: Adding Is Event and Revenue
22:17 Exploratory Data Analysis for Price Elasticity
24:46 Special Event Analysis (Outliers)
31:20 Story: My Dinner with a $1Billion Dollar Per Year Company (How they price)
34:11 Linear Regression: Modeling the Effect of Events
41:05 GAMs: Modeling the "Every-Day" Price
47:00 Visualization: Price-Quantity Model Profiles
48:45 Price Optimization Objective: Maximize Revenue
51:51 Visualize the Revenue Optimization
55:32 GAMs: Modeling the "Special Event" Price
1:01:29 Conclusions: Why do companies hire data scientists?

#DataScience #MachineLearning #Python

[hellskitchens]

Great example of price optimization. I work for a global retailer and work heavily on data science tools. Its great to see other methods and ways to improve. Keep going! I can tell you 150k is just the beginning!

[hassanjaved]

Great content Matt! I have learnt a lot and thank you for putting out such detailed lectures.

[youhavebewarned]

Thank you algorithm for guiding me here.

[pallaviharishchandre]

Extremely informative and well explained. Thank You!

[robertsienkiewicz]

Great video. One question. Often times prices are not set out for equal periods of time. Therefore a decline in qty doesn’t really mean much if the price was only valid for a couple days. I think really the only way around this is adjusted for the time period and seasonality. Any recommendations on how to approach this?

[starshipdestroyer]

Could you please share the link for accessing the data and python code related to Price Elasticity and Optimization? or any process to get atleast data?

[spikeydude]

Am I off base to try to analyze sales compared to 'economic strength'? So instead of price vs volume I would do sales vs inflation rate...is that possible with this approach?

[flyingdutchman]

Hey, bud, I love your projects section and the work that you put into it!! I have a genuine question. - This is nice and all, but steps 1-7 in the DS process are fairly straightforward and standard (some may argue that steps 3 and 4 may be combined). How is this worth $800 when someone can easily complete steps 1-7 and simply learn how to format and map results to Streamlit? I am curious because all the libs are open source, and there are abundant free resources for Streamlit (worst case scenario, a Udemy course on Streamlit is $10-$15.

[tighthead]

When can we expect the superior language version to be uploaded??😂