Related papers: Consumer Behavior under Benevolent Price Discrimin…

Undesired bias afflicts both human and algorithmic decision making, and may be especially prevalent when information processing trade-offs incentivize the use of heuristics. One primary example is \textit{statistical discrimination} --…

In many applications, ads are displayed together with the prices, so as to provide a direct comparison among similar products or services. The price-displaying feature not only influences the consumers' decisions, but also affects the…

In this paper, we examine the effectiveness of various recommendation strategies in the mobile channel and their impact on consumers' utility and demand levels for individual products. We find significant differences in effectiveness among…

We study the effects of data sharing between firms on prices, profits, and consumer welfare. Although indiscriminate sharing of consumer data decreases firm profits due to the subsequent increase in competition, selective sharing can be…

The prevalence of e-commerce has made detailed customers' personal information readily accessible to retailers, and this information has been widely used in pricing decisions. When involving personalized information, how to protect the…

Algorithmic recourse provides counterfactual action plans that help people overturn unfavorable AI decisions. While diverse recourse sets may improve transparency and motivation, they may also impose cognitive load and negative emotions by…

This paper derives a novel representation of the exponential discounting model that allows one to assess departures from the model via a measure of efficiency. The approach uses a revealed preference methodology that does not make any…

Before purchase, a buyer of an experience good learns about the product's fit using various information sources, including some of which the seller may be unaware of. The buyer, however, can conclusively learn the fit only after purchasing…

Algorithmic lending has transformed the consumer credit landscape, with complex machine learning models now commonly used to make or assist underwriting decisions. To comply with fair lending laws, these algorithms typically exclude legally…

In credence goods markets such as health care or repair services, consumers rely on experts with superior information to adequately diagnose and treat them. Experts, however, are constrained in their diagnostic abilities, which hurts market…

In a so-called overpopulated world, sustainable consumption is of existential importance.However, the expanding spectrum of product choices and their production complexity challenge consumers to make informed and value-sensitive decisions.…

In online marketplaces, customers have access to hundreds of reviews for a single product. Buyers often use reviews from other customers that share their type -- such as height for clothing, skin type for skincare products, and location for…

Conversational AI models are becoming increasingly popular and are about to replace traditional search engines for information retrieval and product discovery. This raises concerns about monetization strategies and the potential for subtle…

A monopolist sells goods with possibly a characteristic consumers dislike (for instance, he sells random goods to risk averse agents), which does not affect the production costs. We investigate the question whether using undesirable goods…

Dynamic pricing is commonly used to regulate congestion in shared service systems. This paper is motivated by the fact that in the presence of users with varying price sensitivity (responsiveness), conventional monotonic pricing can lead to…

Two-sided matching markets have long existed to pair agents in the absence of regulated exchanges. A common example is school choice, where a matching mechanism uses student and school preferences to assign students to schools. In such…

In real-world classification settings, such as loan application evaluation or content moderation on online platforms, individuals respond to classifier predictions by strategically updating their features to increase their likelihood of…

The use of dynamic pricing by profit-maximizing firms gives rise to demand fairness concerns, measured by discrepancies in consumer groups' demand responses to a given pricing strategy. Notably, dynamic pricing may result in buyer…

The increasing relevance of Internet-based markets requires a sustained investigation into the relationship between design and user behavior. This research begins within the sociology of quantification and markets to investigate the impacts…

In search engines, online marketplaces and other human-computer interfaces large collectives of individuals sequentially interact with numerous alternatives of varying quality. In these contexts, trial and error (exploration) is crucial for…