海角社区

Dynamic pricing algorithms set the prices we pay online鈥攁nd few rules govern how they work. Even if an algorithm doesn鈥檛 ostensibly consider race at all, research shows that it can be biased and discriminatory on the basis of race, as well as gender, economic level, and other personal information openly gathered from consumers. Desautels Professor Sentao Miao developed an approach to dynamic pricing that builds in fairness constraints to protect consumers, proposing algorithms that keep prices fair across groups and over time.

鈥淪ome variation [in pricing] is quite normal, but it is possible to limit this, which can help to prevent price gouging,鈥� says Miao. 鈥淭his is especially important in situations like the COVID-19 pandemic, when many prices suddenly doubled for the exact same product.鈥�

For more insights, read the research paper: , co-authored with Desautels Professor Maxime Cohen.

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