Science of price experimentation at Amazon

Joe Cooprider () and Shima Nassiri ()
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Joe Cooprider: Amazon Retail Pricing Science and Research
Shima Nassiri: Amazon Retail Pricing Science and Research

Business Economics, 2023, vol. 58, issue 1, No 5, 34-41

Abstract: Abstract In order to improve prices at Amazon, we created Pricing Labs, a price experimentation platform. Since we do not price discriminate, we must run product-randomized experiments. We discuss how we randomize to prevent spillovers, run different experimental designs (i.e., crossovers) to improve precision, and control for demand trends and differences in treatment groups to get more precise treatment effect estimates.

Keywords: Experimentation; Pricing; Multiple Randomization; Spillover Effect (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1057/s11369-023-00303-9

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