Personalized Pricing

Personalized pricing, the practice of charging different prices to individual customers based on their characteristics, aims to maximize seller revenue. Current research focuses on robust optimization techniques to handle uncertainties in consumer behavior, causal inference methods to mitigate selection bias in observational data, and dynamic pricing models that account for strategic buyer manipulation. These advancements are crucial for developing effective and ethical personalized pricing strategies, impacting both businesses' profitability and consumer welfare, while also raising important regulatory considerations regarding fairness and market efficiency.