diff --git a/.gitignore b/.gitignore
index 18da4dd..9cdec32 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,3 +6,8 @@
 **/session_*.svg
 **/*graph.svg
 paper/src/bib/auto
+
+# Airflow logs - exclude DAG run logs
+experiments/airflow/logs/*
+experiments/airflow/logs/scheduler/
+experiments/airflow/logs/dag_processor_manager/
diff --git a/docker-compose.yml b/docker-compose.yml
index 01da852..91384c9 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -71,6 +71,113 @@ services:
       - "${REDPANDA_CONSOLE_PORT:-8080}:8080"
     restart: unless-stopped
 
+  postgres:
+    container_name: "PHANTOM-postgres"
+    image: postgres:13
+    environment:
+      - POSTGRES_USER=airflow
+      - POSTGRES_PASSWORD=airflow
+      - POSTGRES_DB=airflow
+    ports:
+      - "5433:5432"
+    volumes:
+      - postgres_data:/var/lib/postgresql/data
+    restart: unless-stopped
+
+  airflow-init:
+    container_name: "PHANTOM-airflow-init"
+    build:
+      context: .
+      dockerfile: docker/Airflow.dockerfile
+    depends_on:
+      - postgres
+    environment:
+      - AIRFLOW__CORE__EXECUTOR=SequentialExecutor
+      - AIRFLOW__DATABASE__SQL_ALCHEMY_CONN=postgresql+psycopg2://airflow:airflow@postgres/airflow
+      - AIRFLOW__CORE__FERNET_KEY=${AIRFLOW_FERNET_KEY:-fb4E5zWb8hh7WKN7tXUkWP0r5nTcN1nKZGh1h0N3x6Q=}
+      - AIRFLOW__CORE__LOAD_EXAMPLES=false
+      - _AIRFLOW_DB_MIGRATE=true
+      - _AIRFLOW_WWW_USER_CREATE=true
+      - _AIRFLOW_WWW_USER_USERNAME=admin
+      - _AIRFLOW_WWW_USER_PASSWORD=admin
+    volumes:
+      - ./experiments/airflow/dags:/opt/airflow/dags
+      - ./experiments/airflow/logs:/opt/airflow/logs
+      - ./experiments/airflow/plugins:/opt/airflow/plugins
+      - ./experiments/procesing:/opt/airflow/procesing
+    command: version
+    restart: "no"
+
+  airflow-webserver:
+    container_name: "PHANTOM-airflow-webserver"
+    build:
+      context: .
+      dockerfile: docker/Airflow.dockerfile
+    depends_on:
+      - postgres
+      - airflow-init
+    environment:
+      - AIRFLOW__CORE__EXECUTOR=SequentialExecutor
+      - AIRFLOW__DATABASE__SQL_ALCHEMY_CONN=postgresql+psycopg2://airflow:airflow@postgres/airflow
+      - AIRFLOW__CORE__FERNET_KEY=${AIRFLOW_FERNET_KEY:-fb4E5zWb8hh7WKN7tXUkWP0r5nTcN1nKZGh1h0N3x6Q=}
+      - AIRFLOW__CORE__DAGS_ARE_PAUSED_AT_CREATION=true
+      - AIRFLOW__CORE__LOAD_EXAMPLES=false
+      - AIRFLOW__WEBSERVER__EXPOSE_CONFIG=true
+      - KAFKA_HOST=kafka
+      - KAFKA_PORT=29092
+      - BACKEND_URL=http://backend:5000
+      - NEXT_PUBLIC_SUPABASE_URL=${NEXT_PUBLIC_SUPABASE_URL}
+      - NEXT_PUBLIC_SUPABASE_ANON_KEY=${NEXT_PUBLIC_SUPABASE_ANON_KEY}
+    ports:
+      - "${AIRFLOW_WEBSERVER_PORT:-8085}:8080"
+    volumes:
+      - ./experiments/airflow/dags:/opt/airflow/dags:ro
+      - ./experiments/airflow/logs:/opt/airflow/logs
+      - ./experiments/airflow/plugins:/opt/airflow/plugins:ro
+      - ./experiments/procesing:/opt/airflow/procesing:ro
+    command: webserver
+    restart: unless-stopped
+    healthcheck:
+      test: ["CMD", "curl", "--fail", "http://localhost:8080/health"]
+      interval: 30s
+      timeout: 10s
+      retries: 5
+      start_period: 30s
+
+  airflow-scheduler:
+    container_name: "PHANTOM-airflow-scheduler"
+    build:
+      context: .
+      dockerfile: docker/Airflow.dockerfile
+    depends_on:
+      airflow-webserver:
+        condition: service_healthy
+    environment:
+      - AIRFLOW__CORE__EXECUTOR=SequentialExecutor
+      - AIRFLOW__DATABASE__SQL_ALCHEMY_CONN=postgresql+psycopg2://airflow:airflow@postgres/airflow
+      - AIRFLOW__CORE__FERNET_KEY=${AIRFLOW_FERNET_KEY:-fb4E5zWb8hh7WKN7tXUkWP0r5nTcN1nKZGh1h0N3x6Q=}
+      - AIRFLOW__CORE__DAGS_ARE_PAUSED_AT_CREATION=true
+      - AIRFLOW__CORE__LOAD_EXAMPLES=false
+      - KAFKA_HOST=kafka
+      - KAFKA_PORT=29092
+      - BACKEND_URL=http://backend:5000
+      - NEXT_PUBLIC_SUPABASE_URL=${NEXT_PUBLIC_SUPABASE_URL}
+      - NEXT_PUBLIC_SUPABASE_ANON_KEY=${NEXT_PUBLIC_SUPABASE_ANON_KEY}
+    volumes:
+      - ./experiments/airflow/dags:/opt/airflow/dags:ro
+      - ./experiments/airflow/logs:/opt/airflow/logs
+      - ./experiments/airflow/plugins:/opt/airflow/plugins:ro
+      - ./experiments/procesing:/opt/airflow/procesing:ro
+    command: scheduler
+    restart: unless-stopped
+    healthcheck:
+      test: ["CMD-SHELL", 'airflow jobs check --job-type SchedulerJob --hostname "$${HOSTNAME}"']
+      interval: 30s
+      timeout: 10s
+      retries: 5
+      start_period: 30s
+
 volumes:
   phantom_kafka_data:
   phantom_redis_data:
+  postgres_data:
diff --git a/docker/Airflow.dockerfile b/docker/Airflow.dockerfile
new file mode 100644
index 0000000..5b11cc9
--- /dev/null
+++ b/docker/Airflow.dockerfile
@@ -0,0 +1,23 @@
+FROM apache/airflow:2.7.3-python3.11
+
+USER root
+
+# install system deps if needed
+RUN apt-get update && apt-get install -y --no-install-recommends \
+    build-essential \
+    && apt-get clean \
+    && rm -rf /var/lib/apt/lists/*
+
+USER airflow
+
+# copy requirements for pipeline dependencies
+COPY requirements.txt /tmp/requirements.txt
+RUN pip install --no-cache-dir -r /tmp/requirements.txt
+
+# install postgres driver and providers
+RUN pip install --no-cache-dir \
+    psycopg2-binary \
+    apache-airflow-providers-postgres
+
+# set airflow home
+ENV AIRFLOW_HOME=/opt/airflow
diff --git a/experiments/airflow/dags/elasticity_pricing_dag.py b/experiments/airflow/dags/elasticity_pricing_dag.py
new file mode 100644
index 0000000..9e24fde
--- /dev/null
+++ b/experiments/airflow/dags/elasticity_pricing_dag.py
@@ -0,0 +1,252 @@
+from airflow import DAG
+from airflow.operators.python import PythonOperator
+from airflow.utils.dates import days_ago
+from datetime import timedelta
+import pandas as pd
+import logging
+import sys
+import os
+
+# add procesing module to path (mounted at /opt/airflow/procesing in container)
+sys.path.insert(0, '/opt/airflow/procesing')
+
+from extract import KafkaDataFetcher, ExperimentJoiner, EventTitleAugmenter
+from demand import DemandEstimator, ChunkInteractionsIntoSteps
+from elasticity import TemporalElasticityEstimator, aggregate_price_logs
+
+default_args = {
+    'owner': 'phantom-research',
+    'depends_on_past': False,
+    'email_on_failure': False,
+    'email_on_retry': False,
+    'retries': 2,
+    'retry_delay': timedelta(minutes=5),
+}
+
+# callable functions for tasks (stateless, idempotent)
+def fetch_interactions(**context):
+    """Extract interaction data from Kafka and augment"""
+    fetcher = KafkaDataFetcher(topic='user-interactions')
+    data = fetcher.fit_transform(None)
+
+    if data.empty:
+        logging.warning("No interaction data fetched")
+        return None
+
+    data = ExperimentJoiner().fit_transform(data)
+    data = EventTitleAugmenter().fit_transform(data)
+
+    # push to XCom for downstream tasks
+    context['task_instance'].xcom_push(key='interaction_data', value=data.to_json())
+    logging.info(f"Fetched {len(data)} interaction records")
+    return len(data)
+
+def fetch_price_logs(**context):
+    """Extract price logs from Kafka"""
+    fetcher = KafkaDataFetcher(topic='price-logs')
+    data = fetcher.fit_transform(None)
+
+    if data.empty:
+        logging.warning("No price data fetched")
+        return None
+
+    context['task_instance'].xcom_push(key='price_data', value=data.to_json())
+    logging.info(f"Fetched {len(data)} price records")
+    return len(data)
+
+def compute_demand_chunks(**context):
+    """Chunk interactions and compute demand per window"""
+    ti = context['task_instance']
+    window_size = context['dag_run'].conf.get('window_size', '30s')
+    store_mode = context['dag_run'].conf.get('store_mode', 'hotel')
+
+    # pull from XCom
+    interaction_json = ti.xcom_pull(task_ids='fetch_interactions', key='interaction_data')
+    if not interaction_json:
+        logging.error("No interaction data available")
+        return None
+
+    interactions_df = pd.read_json(interaction_json)
+
+    # chunk into windows
+    chunker = ChunkInteractionsIntoSteps(window_size=window_size, return_metadata=True)
+    chunks = chunker.transform(interactions_df)
+
+    if not chunks:
+        logging.warning("No chunks generated")
+        return None
+
+    # compute demand per chunk
+    estimator = DemandEstimator(store_mode=store_mode)
+    demand_chunks = [
+        {
+            'window_start': c['window_start'].isoformat(),
+            'window_end': c['window_end'].isoformat(),
+            'demand_vector': estimator.transform(c['data']).to_json()
+        }
+        for c in chunks
+    ]
+
+    ti.xcom_push(key='demand_chunks', value=demand_chunks)
+    logging.info(f"Generated {len(demand_chunks)} demand chunks @ {window_size}")
+    return len(demand_chunks)
+
+def aggregate_prices(**context):
+    """Aggregate price logs into aligned windows"""
+    ti = context['task_instance']
+    window_size = context['dag_run'].conf.get('window_size', '30s')
+    store_mode = context['dag_run'].conf.get('store_mode', 'hotel')
+
+    price_json = ti.xcom_pull(task_ids='fetch_price_logs', key='price_data')
+    if not price_json:
+        logging.error("No price data available")
+        return None
+
+    price_df = pd.read_json(price_json)
+    price_chunks = aggregate_price_logs(price_df, window_size=window_size, store_mode=store_mode)
+
+    # serialize for XCom
+    serialized = [
+        {
+            'window_start': c['window_start'].isoformat(),
+            'window_end': c['window_end'].isoformat(),
+            'price_vector': c['price_vector'].to_json()
+        }
+        for c in price_chunks
+    ]
+
+    ti.xcom_push(key='price_chunks', value=serialized)
+    logging.info(f"Aggregated {len(price_chunks)} price chunks")
+    return len(price_chunks)
+
+def compute_elasticity(**context):
+    """Compute price elasticity from demand and price chunks"""
+    ti = context['task_instance']
+    store_mode = context['dag_run'].conf.get('store_mode', 'hotel')
+    method = context['dag_run'].conf.get('elasticity_method', 'point')
+    min_obs = context['dag_run'].conf.get('min_observations', 2)
+
+    # pull chunks from XCom
+    demand_chunks_raw = ti.xcom_pull(task_ids='compute_demand', key='demand_chunks')
+    price_chunks_raw = ti.xcom_pull(task_ids='aggregate_prices', key='price_chunks')
+
+    if not demand_chunks_raw or not price_chunks_raw:
+        logging.error("Missing demand or price chunks")
+        return None
+
+    # deserialize
+    demand_chunks = [
+        {
+            'window_start': pd.Timestamp(c['window_start']),
+            'window_end': pd.Timestamp(c['window_end']),
+            'demand_vector': pd.read_json(c['demand_vector'])
+        }
+        for c in demand_chunks_raw
+    ]
+
+    price_chunks = [
+        {
+            'window_start': pd.Timestamp(c['window_start']),
+            'window_end': pd.Timestamp(c['window_end']),
+            'price_vector': pd.read_json(c['price_vector'])
+        }
+        for c in price_chunks_raw
+    ]
+
+    # compute elasticity
+    estimator = TemporalElasticityEstimator(method=method, min_observations=min_obs)
+    elasticity_df = estimator.transform(demand_chunks, price_chunks, store_mode=store_mode)
+
+    if elasticity_df is None or elasticity_df.empty:
+        logging.warning("No elasticity results computed")
+        return None
+
+    # store results (could push to DB, S3, or XCom)
+    ti.xcom_push(key='elasticity_results', value=elasticity_df.to_json())
+    logging.info(f"Computed elasticity for {len(elasticity_df)} products")
+
+    # summary stats
+    return {
+        'n_products': len(elasticity_df),
+        'mean_elasticity': float(elasticity_df['elasticity'].mean()),
+        'median_elasticity': float(elasticity_df['elasticity'].median())
+    }
+
+def publish_results(**context):
+    """Publish elasticity results to model registry or backend"""
+    ti = context['task_instance']
+    elasticity_json = ti.xcom_pull(task_ids='compute_elasticity', key='elasticity_results')
+
+    if not elasticity_json:
+        logging.error("No elasticity results to publish")
+        return None
+
+    elasticity_df = pd.read_json(elasticity_json)
+
+    # TODO: implement actual publishing logic
+    # - push to model registry
+    # - update pricing provider service
+    # - store in database for audit trail
+
+    logging.info(f"Published elasticity for {len(elasticity_df)} products")
+    return True
+
+
+# DAG definition
+with DAG(
+    'elasticity_pricing_pipeline',
+    default_args=default_args,
+    description='E2E pipeline: interactions → demand → elasticity → pricing',
+    schedule_interval='*/5 * * * *',  # every 5 minutes for real-time pricing
+    start_date=days_ago(1),
+    catchup=False,
+    max_active_runs=1,
+    tags=['pricing', 'elasticity', 'research'],
+) as dag:
+
+    # parallel data fetching
+    fetch_interactions_task = PythonOperator(
+        task_id='fetch_interactions',
+        python_callable=fetch_interactions,
+        provide_context=True,
+    )
+
+    fetch_price_logs_task = PythonOperator(
+        task_id='fetch_price_logs',
+        python_callable=fetch_price_logs,
+        provide_context=True,
+    )
+
+    # demand computation (depends on interactions)
+    compute_demand_task = PythonOperator(
+        task_id='compute_demand',
+        python_callable=compute_demand_chunks,
+        provide_context=True,
+    )
+
+    # price aggregation (depends on price logs)
+    aggregate_prices_task = PythonOperator(
+        task_id='aggregate_prices',
+        python_callable=aggregate_prices,
+        provide_context=True,
+    )
+
+    # elasticity computation (depends on both demand and prices)
+    compute_elasticity_task = PythonOperator(
+        task_id='compute_elasticity',
+        python_callable=compute_elasticity,
+        provide_context=True,
+    )
+
+    # publish results (depends on elasticity)
+    publish_results_task = PythonOperator(
+        task_id='publish_results',
+        python_callable=publish_results,
+        provide_context=True,
+    )
+
+    # dependency graph
+    fetch_interactions_task >> compute_demand_task
+    fetch_price_logs_task >> aggregate_prices_task
+    [compute_demand_task, aggregate_prices_task] >> compute_elasticity_task
+    compute_elasticity_task >> publish_results_task