Companies frequently rely on pricing algorithms to automate their price-setting in online markets; thereby, algorithmic dynamic pricing (ADP) has become a common pricing practice in the digital era, with retailers regularly tweaking products’ prices in their online shops. On Amazon.com alone, millions of price changes occur within a day, which corresponds to a price change approximately every ten minutes for each product. Yet, so far, the effects of such pricing algorithms on consumers are unclear. Since ascertaining consumer reactions is essential for retailers’ pricing strategies and retailers need to know how to mitigate negative reactions, our focal research questions are: How do consumers respond to ADP? How can retailers mitigate negative consumer reactions to ADP?

• Arnd Vomber(University of Mannheim, Germany)
• Christian Homburg(University of Mannheim & University of Manchester, Germany)
• Panagiotis Sarantopoulos(Athens University of Economics and Business & University of Manchester, Greece)