OnDemand WTP Pricing Research

Are Online Shopping Algorithms Colluding the Prices? | CIO Review

FREMONT, CA: While shopping online, it’s rare to witness a change in the price of a product within a short period. But as of recent, the trend is changing. The retailer’s pricing algorithm might be the underlying reason for the altered price.

When deciding a product’s price, marketers consider the cost of similar products and the value of the product to the buyer. But recent technological advancements have transformed the conventional methods. Pricing algorithms are setting the price of products within a digital setup. The algorithms collude with each other for maximizing profit that will be against the consumer’s interest.

Earlier online shopping led to a competitive environment that forced marketers to keep the prices at check. But with the current revenue management pricing systems, online retailers can predict demand using market data and set prices accordingly for maximum profit.

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Are Online Shopping Algorithms Colluding the Prices?.

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