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https://github.com/thomasnield/bayes_price_war


https://github.com/thomasnield/bayes_price_war

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# Price War with Bayes

WORK-IN-PROGRESS

Using Bayes to predict probabilities of retaliatory pricing, and update the probabilities as events transpire over a simulated timeline.

Structure: As a retailer, when I launch a series of sales on Products 1-4, over time what is the probability...

* A competitor will match/undercut me
* A competitor will match/undercut on a specific product
* A specific competitor will match/undercut
* A specific competitor will match/undercut on a specific product

The intitial estimate probabilty of a match will be 60%, an undercut 20%, and walk away 20%

![](https://i.imgur.com/oz4mWV8.png)