| Title |
Algorithmic Pricing and Price Gouging. Consequences of High-Impact, Low Probability Events |
| ID_Doc |
75980 |
| Authors |
Sánchez-Cartas, JM; Tejero, A; León, G |
| Title |
Algorithmic Pricing and Price Gouging. Consequences of High-Impact, Low Probability Events |
| Year |
2021 |
| Published |
Sustainability, 13, 5 |
| DOI |
10.3390/su13052542 |
| Abstract |
Algorithmic pricing may lead to more efficient and contestable markets, but high-impact, low-probability events such as terror attacks or heavy storms may lead to price gouging, which may trigger injunctions or get sellers banned from platforms such as Amazon or eBay. This work addresses how such events may impact prices when set by an algorithm and how different markets may be affected. We analyze how to mitigate these high-impact events by paying attention to external (market conditions) and internal (algorithm design) features surrounding the algorithms. We find that both forces may help in partially mitigating price gouging, but it remains unknown which forces or features may lead to complete mitigation. |
| Author Keywords |
pricing algorithms; artificial intelligence; sustainable business models; digital products; PSO; competition; price gouging |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI) |
| EID |
WOS:000628557700001 |
| WoS Category |
Green & Sustainable Science & Technology; Environmental Sciences; Environmental Studies |
| Research Area |
Science & Technology - Other Topics; Environmental Sciences & Ecology |
| PDF |
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