Related papers: Consumer Behavior under Benevolent Price Discrimin…
We explore heterogeneous prices as a source of heterogeneous or stochastic demand. Heterogeneous prices could arise either because there is actual price variation among consumers or because consumers (mis)perceive prices differently. Our…
The rapid expansion of digital commerce platforms has amplified the strategic importance of coordinated pricing and inventory management decisions among competing retailers. Motivated by practices on leading e-commerce platforms, we analyze…
Nowadays, many decisions are made using predictive models built on historical data.Predictive models may systematically discriminate groups of people even if the computing process is fair and well-intentioned. Discrimination-aware data…
Low search costs in Internet markets can be used by consumers to find low prices, but can also be used by retailers to monitor competitors' prices. This price monitoring can lead to price matching, resulting in dampened price competition…
Recent studies have shown that recommendation systems commonly suffer from popularity bias. Popularity bias refers to the problem that popular items (i.e., frequently rated items) are recommended frequently while less popular items are…
The possibility that price dynamics is affected by its distance from a moving average has been recently introduced as new statistical tool. The purpose is to identify the tendency of the price dynamics to be attractive or repulsive with…
Preference elicitation explicitly asks users what kind of recommendations they would like to receive. It is a popular technique for conversational recommender systems to deal with cold-starts. Previous work has studied selection bias in…
In the basic recommendation paradigm, the most (predicted) relevant item is recommended to each user. This may result in some items receiving lower exposure than they "should"; to counter this, several algorithmic approaches have been…
The existing studies on consumer search agree that consumers are worse-off when they do not observe sellers' production marginal cost than when they do. In this paper we challenge this conclusion. Employing a canonical model of simultaneous…
Digital discrimination is a form of discrimination whereby users are automatically treated unfairly, unethically or just differently based on their personal data by a machine learning (ML) system. Examples of digital discrimination include…
Fashion preference is a fuzzy concept that depends on customer taste, prevailing norms in fashion product/style, henceforth used interchangeably, and a customer's perception of utility or fashionability, yet fashion e-retail relies on…
This paper studies ranking policies in a stylized trial-offer marketplace model, in which a single firm offers products and has consumers with heterogeneous preferences. Consumer trials are influenced by past purchases and the ranking of…
This paper investigates a novel behavioral feature of recursive preferences: aversion to risks that persist over time, or simply \textit{correlation aversion}. Greater persistence provides information about future consumption but reduces…
This paper investigates the value of recommendations for disseminating economic information, with a focus on frictions resulting from preference heterogeneity. We consider Bayesian expected-payoff maximizers who receive non-strategic…
This paper considers behavior-based price discrimination in the repeated sale of a non-durable good to a single long-lived buyer, by a seller without commitment power. We assume that there is a mixed population of forward-looking…
Behavioural economists have shown that people are often averse to inequality and will make choices to avoid unequal outcomes. In this paper, we consider how to allocate indivisible goods fairly so as to minimize inequality. We consider how…
Personalized pricing is a business strategy to charge different prices to individual consumers based on their characteristics and behaviors. It has become common practice in many industries nowadays due to the availability of a growing…
We build on theoretical results from the mechanism design literature to analyze empirical models of second-degree price discrimination (2PD). We show that for a random-coefficients discrete choice ("BLP") model to be suitable for studying…
We study a producer's problem of selling a product to a continuum of privacy-conscious consumers, where the producer can implement third-degree price discrimination, offering different prices to different market segments. We consider a…
The continuous growth of electronic commerce has stimulated great interest in studying online consumer behavior. Given the significant growth in online shopping, better understanding of customers allows better marketing strategies to be…