Algorithms in the marketplace: An empirical analysis of automated pricing in e-commerce

IF 4.5 3区 经济学 Q1 ECONOMICS
Philip Hanspach , Geza Sapi , Marcel Wieting
{"title":"Algorithms in the marketplace: An empirical analysis of automated pricing in e-commerce","authors":"Philip Hanspach ,&nbsp;Geza Sapi ,&nbsp;Marcel Wieting","doi":"10.1016/j.infoecopol.2024.101111","DOIUrl":null,"url":null,"abstract":"<div><div>We analyze algorithmic pricing on the largest online marketplace in the Netherlands and Belgium. Based on two months of pricing data for around 2800 products, we find no significant correlation between the use of algorithms and an increase in prices of the Buy Box (the most prominently displayed offer for a product). We document that the presence of an algorithmic seller in monopoly markets goes hand-in-hand with lower prices. This effect is likely due to algorithms correcting excessively high human-set prices. We describe several characteristic algorithmic pricing patterns. While some of these pricing patterns are consistent with algorithmic collusion, such practice appears to be a fringe phenomenon. Overall, our findings call for careful policy with respect to pricing algorithms that remains alert to the possibility of algorithmic collusion but recognizes that pricing algorithms may benefit consumers.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"69 ","pages":"Article 101111"},"PeriodicalIF":4.5000,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Information Economics and Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0167624524000337","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0

Abstract

We analyze algorithmic pricing on the largest online marketplace in the Netherlands and Belgium. Based on two months of pricing data for around 2800 products, we find no significant correlation between the use of algorithms and an increase in prices of the Buy Box (the most prominently displayed offer for a product). We document that the presence of an algorithmic seller in monopoly markets goes hand-in-hand with lower prices. This effect is likely due to algorithms correcting excessively high human-set prices. We describe several characteristic algorithmic pricing patterns. While some of these pricing patterns are consistent with algorithmic collusion, such practice appears to be a fringe phenomenon. Overall, our findings call for careful policy with respect to pricing algorithms that remains alert to the possibility of algorithmic collusion but recognizes that pricing algorithms may benefit consumers.
市场中的算法:电子商务中自动定价的实证分析
我们分析了荷兰和比利时最大在线市场的算法定价。根据约 2800 种产品两个月的定价数据,我们发现算法的使用与 "购买框"(最显眼的产品报价)价格上涨之间没有明显的相关性。我们发现,在垄断市场中,算法卖家的存在与较低的价格并存。这种效应可能是由于算法纠正了过高的人工设定价格。我们描述了几种典型的算法定价模式。虽然其中一些定价模式与算法合谋一致,但这种做法似乎是一种边缘现象。总之,我们的研究结果要求在定价算法方面制定谨慎的政策,既要警惕算法合谋的可能性,又要认识到定价算法可能有利于消费者。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
5.00
自引率
10.70%
发文量
27
期刊介绍: IEP is an international journal that aims to publish peer-reviewed policy-oriented research about the production, distribution and use of information, including these subjects: the economics of the telecommunications, mass media, and other information industries, the economics of innovation and intellectual property, the role of information in economic development, and the role of information and information technology in the functioning of markets. The purpose of the journal is to provide an interdisciplinary and international forum for theoretical and empirical research that addresses the needs of other researchers, government, and professionals who are involved in the policy-making process. IEP publishes research papers, short contributions, and surveys.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信