The theoretical potential of algorithmic and automated pricing to increase company value

Peter Rathnow, Benjamin Zeller and Matthias Lederer
Additional contact information
Peter Rathnow: Owner, Prof. Rathnow Consulting, Germany
Benjamin Zeller: Manager Corporate Strategy, Ivoclar Vivadent, Liechtenstein
Matthias Lederer: OTH Technical University of Applied Sciences Amberg-Weiden, Germany

Journal of AI, Robotics & Workplace Automation, 2024, vol. 3, issue 2, 111-123

Abstract: This paper explores the potential benefits and challenges of algorithmic and automated pricing for businesses and critically examines the associated ethical and legal implications. To this end, in this first part of a two-part study, seven areas of discussion were identified in which the future of algorithmic pricing can be described in an overall view (eg data, resource allocation). Within these areas, a total of nine central hypotheses (eg what effects it will have on competitive situations and the development of user acceptance) were developed on the basis of current scientific findings. The overall study takes a customer-centric approach and proposes that algorithmic pricing should be seen not only as a tool to maximise profits, but as a strategy that creates added value for both the company and the consumer. In the second part of the study (to be published in the next issue of the journal), the hypotheses developed in this paper will be evaluated by experts in the field.

Keywords: algorithmic pricing; dynamic pricing; shareholder value; customer centricity; profit maximisation; value creation (search for similar items in EconPapers)
JEL-codes: G2 M15 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/8572/download/ (application/pdf)
https://hstalks.com/article/8572/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:airwa0:y:2024:v:3:i:2:p:111-123

Access Statistics for this article

More articles in Journal of AI, Robotics & Workplace Automation from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().