Fairness Incentives in Response to Unfair Dynamic Pricing

arXiv:2404.14620v1 Announce Type: new
Abstract: 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 distributions unreflective of those of the underlying population, which can be problematic in markets where fair representation is socially desirable. To address this, policy makers might leverage tools such as taxation and subsidy to adapt policy mechanisms dependent upon their social …

abstract arxiv concerns consumer cs.cy cs.lg demand dynamic dynamic pricing fairness incentives population pricing profit responses strategy type