EconBase
← All papers

Multi-Agent Reinforcement Learning for Dynamic Pricing in Supply Chains: Benchmarking Strategic Agent Behaviours under Realistically Simulated Market Conditions

Thomas Hazenberg, Yao Ma, Seyed Sahand Mohammadi Ziabari, Marijn van Rijswijk

arXiv 3 Jul 2025 · Machine Learning

arXiv:2507.02698 · PDF · Extracted main text

Abstract

This study investigates how Multi-Agent Reinforcement Learning (MARL) can improve dynamic pricing strategies in supply chains, particularly in contexts where traditional ERP systems rely on static, rule-based approaches that overlook strategic interactions among market actors. While recent research has applied reinforcement learning to pricing, most implementations remain single-agent and fail to model the interdependent nature of real-world supply chains. This study addresses that gap by evaluating the performance of three MARL algorithms: MADDPG, MADQN, and QMIX against static rule-based baselines, within a simulated environment informed by real e-commerce transaction data and a LightGBM demand prediction model. Results show that rule-based agents achieve near-perfect fairness (Jain's Index: 0.9896) and the highest price stability (volatility: 0.024), but they fully lack competitive dynamics. Among MARL agents, MADQN exhibits the most aggressive pricing behaviour, with the highest volatility and the lowest fairness (0.5844). MADDPG provides a more balanced approach, supporting market competition (share volatility: 9.5 pp) while maintaining relatively high fairness (0.8819) and stable pricing. These findings suggest that MARL introduces emergent strategic behaviour not captured by static pricing rules and may inform future developments in dynamic pricing.

Citation extraction

61
references
78
in-text mentions
61
distinct cited
0
self-citations
11,657
main-text words

appendix boundary found by appendix_command · 85% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Annie Wong, Thomas Bäck, Anna V Kononova, and Aske Plaat (2023) Deep multiagent reinforcement learning: Challenges and directions1.00063100%
2Kallirroi Georgila, Claire Nelson, and David Traum (2014) Single-agent vs. multi-agent techniques for concurrent reinforcement learning of negotiation dialogue policies. In Proceedings o…0.73732100%
3Ziyuan Zhou, Guanjun Liu, and Ying Tang (2023) Multi-agent reinforcement learning: Methods, applications, visionary prospects, and challenges0.73732100%
4Lucian Busoniu, Robert Babuska, and Bart De Schutter (2008) A comprehensive survey of multiagent reinforcement learning0.64422100%
5Le Li, Xiao Lin, Rudy R Negenborn, and Bart De Schutter (2015) Pricing intermodal freight transport services: A cost-plus-pricing strategy. In Computational Logistics: 6th International Confe…0.64422100%
6Ryan Lowe, Yi Wu, Aviv Tamar, Jean Harb, Pieter Abbeel, and Igor Mor… (2017) Multi-Agent Actor-Critic for Mixed Cooperative-Competitive Environments. In Advances in Neural Information Processing Systems, V…0.64422100%
7Goncalo Neto (2005) From Single-Agent to Multi-Agent Reinforcement Learning: Foundational Concepts and Methods0.64422100%
8Christopher JCH Watkins and Peter Dayan (1992) Q-learning0.58531100%
9Jacob Hilton, Jie Tang, and John Schulman (2023) Scaling laws for single-agent reinforcement learning0.51121100%
10Vipul Jain and Lyes Benyoucef (2008) Managing long supply chain networks: some emerging issues and challenges0.51121100%

Showing the top 10 of 61 scored citations.