I am trying to approximate Price-vs-Quantity (P-Q) curve of a dynamic product (think Hotels, Airlines etc). As you can imagine, if you take a hotel property, the price of rooms (assuming the same room category) changes based on demand dynamically. The historical data will have several price points versus quantity remaining and I am trying to approximate this P-Q graph.
One approach that I am trying is, to use the KDE plot and choose a reasonable bandwidth that is neither too noisy nor too simplistic. Is it a terrible idea to use KDE for this purpose and do sampling from that KDE distribution?