๐Ÿ’ฒ Revenue Pricing

A firm sets prices for eight customer segments. Each segment's demand falls linearly with price, q = a โˆ’ bยทp, and all segments draw on one limited capacity. Price too low and demand overruns capacity (penalised); too high and revenue collapses. The optimum is capacity-constrained segment pricing, raising prices on the segments that consume scarce capacity most. Score is negative revenue plus an over-capacity penalty. 8-D.

Algorithm

Revenueโ€”
Demand / capacityโ€”
Prices tried0
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What's happening

The JS objective is a line-for-line port of example_applications/revenue_pricing and agrees with it to floating-point tolerance. Bars show each segment's price (height) and resulting demand (overlay); the capacity line marks where the over-capacity penalty starts biting.