Research & Writing

Working Paper

Profit-Aware Pricing in Two-Sided Marketplaces: Demand Elasticity, Cost Uncertainty, and Customer Lifetime Value in Brazilian E-Commerce

Dinesh R Poddaturi  |  2026

This paper develops an integrated pricing transformation framework for two-sided e-commerce marketplaces, combining demand elasticity estimation, profit optimization under cost uncertainty, customer propensity modeling, and sequential purchase pattern analysis. Applied to 110,840 transactions across 71 product categories from the Olist Brazilian marketplace, the analysis demonstrates that revenue maximization and profit maximization are fundamentally misaligned in elastic markets: a 40% price cut generates a 160% revenue increase but a 162% profit loss. A key methodological finding is that cost uncertainty dominates elasticity uncertainty — a 5-point COGS error forfeits 70 to 75% of potential profit gains, while a 20% elasticity error preserves profitability across all scenarios. The paper includes a complete implementation framework with A/B testing protocols, phased rollout sequencing, and risk mitigation procedures.


Doctoral Dissertation

My doctoral dissertation at Iowa State University developed dynamic structural economic models of the U.S. beef cattle industry, with applications to disease outbreak scenarios and agricultural policy analysis. The work focuses on dynamic optimization, structural estimation, and demand systems — methods that transfer directly to applied pricing and market analysis in commercial contexts. Co-authored with Chad E. Hart and Lee L. Schulz.

A Dynamic Assessment of the Economic Impacts of a Foot-and-Mouth Disease Outbreak on the U.S. Beef Cattle Industry

Dinesh R Poddaturi, Chad E Hart, Lee L Schulz  |  Presented at Western Agricultural Economics Association, 2022

Develops a dynamic framework integrating rancher optimization, cattle biology, stock replacement, age distribution, and market processes, calibrated to the U.S. beef cattle industry. Estimates the economic impacts of a hypothetical Foot-and-Mouth Disease outbreak by integrating trade, consumption, and supply shocks into the dynamic framework. The framework is generalizable to a variety of production and policy shifts beyond disease scenarios.

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A Dynamic Model of U.S. Beef Cattle

Dinesh R Poddaturi, Chad E Hart, Lee L Schulz  |  Presented at Agricultural and Applied Economics Association, 2020

Develops a bottom-up dynamic economic model of the U.S. beef cattle industry incorporating farmer optimization behavior, cattle biology, age and gender composition, and micro-foundations. Calibrated under naive and rational price expectations to capture observed industry dynamics and project future prices and quantities.

Implementing a National Animal Identification and Traceability Program: Economic Assessment using a Dynamic Model of U.S. Beef Cattle

Dinesh R Poddaturi, Chad E Hart, Lee L Schulz  |  Presented at Agricultural and Applied Economics Association, 2021

Quantifies the short-run and long-run economic impacts of a mandatory national animal identification and traceability system on U.S. beef cattle producers, including producer surplus changes under different cost-sharing programs and adoption rates.


Earlier Work

Autoregressive Tempered Fractionally Integrated Moving Average Model (2018)

Dinesh R Poddaturi  |  MS Statistics Creative Component

Analysis of the ARTFIMA time series model and its applications to real-world data, comparing model fit and predictive performance against ARFIMA and ARMA specifications.

Development of a CRUSH Margin Calculator for Beef and Pork Markets (2017)

Dinesh R Poddaturi, Garland Dahlke, Russ Euken, Lee L Schulz

Web-based application utilizing CME futures settlement price data to generate expected margins for beef and pork producers. Used daily by beef and pork producers for price risk management.