 Bayesian-optimal pricing

Bayesian-optimal pricing is an approach to pricing strategies that incorporates Bayesian principles to make informed, data-driven pricing decisions under uncertainty. This method is particularly useful in situations where the willingness to pay of customers is not known with certainty and can vary among different segments of the population. ### Key Elements of Bayesian-Optimal Pricing: 1. **Uncertainty and Prior Beliefs**: Bayesian reasoning starts with prior beliefs about the distribution of customer valuations (i.e.