BEGIN:VCALENDAR VERSION:2.0 PRODID:-//132.216.98.100//NONSGML kigkonsult.se iCalcreator 2.20.4// BEGIN:VEVENT UID:20251110T200759EST-0397tNuhxL@132.216.98.100 DTSTAMP:20251111T010759Z DESCRIPTION:Diego Aparicio\n\nIESE\n\nAlgorithmic Pricing and Price Variabi lity\n\nDate: Friday\, November 14\, 2025\n Time: 11:00 AM - 12:00 PM\n Loca tion: Bronfman Building\, Room 375\n\n\nAbstract\n\nArtificial Intelligenc e (AI) automates human decisions. Algorithmic pricing---an AI application for scalable price determination---is now prevalent in ride-hailing\, trav el\, drugs\, gasoline\, and online retail. A common thread across all thes e implementations is heightened price variability due to frequent price ad justments made by the algorithms. We study the impact of this algorithmic pricing-induced price variability on consumer behavior. Using granular cli ckstream data from an online grocery retailer in the U.S. that implemented algorithmic pricing\, we find that increased price variability exacerbate s consumer price sensitivity. While extant literature shows that firms are better off using algorithmic pricing\, these findings are economically co nsequential as AI pricing triggers side effects that undermine those gains \, i.e.\, a more price-sensitive demand offsets some of the expected benef its of algorithmic pricing. We confirm the findings of our field study usi ng controlled lab experiments.\n DTSTART:20251114T160000Z DTEND:20251114T170000Z LOCATION:Room 375\, Donald E. Armstrong Building\, CA\, QC\, Montreal\, H3A 3L1\, 3420 rue McTavish SUMMARY:Clone of Management Science Research Centre (MSRC) Seminar: Diego A paricio URL:/desautels/channels/event/clone-management-science -research-centre-msrc-seminar-diego-aparicio-368833 END:VEVENT END:VCALENDAR