Ethical and legal considerations of artificial intelligence and algorithmic decision-making in personalized pricing
Joshua A. Gerlick () and
Stephan M. Liozu
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Joshua A. Gerlick: Case Western Reserve University
Stephan M. Liozu: Case Western Reserve University
Journal of Revenue and Pricing Management, 2020, vol. 19, issue 2, No 2, 85-98
Abstract The extent to which pricing executives consider consumer perceptions of deception, fairness, and social justice is positioned within an emerging area of research that triangulates the dynamic between legal constraints, ethical considerations, and algorithmic models to make pricing decisions. This paper builds a conceptual model from an analysis of literature describing how companies couple organizational and technology factors into the price-setting process. The legal frameworks of antitrust, data privacy, and antidiscrimination are tethered to the ethical frameworks of deception, fairness, and social justice to form a foundation of relevant organizational factors. A qualitative study is proposed to test the validity of the conceptual model. The primary contribution of this paper is to catalyze practitioner discussion and spur empirical research into the implications of personalized pricing using algorithmic models.
Keywords: Personalized pricing; Algorithmic pricing; Artificial intelligence; Business ethics; Legal environment; Consumer perceptions; Information technology (search for similar items in EconPapers)
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