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The theoretical potential of algorithmic and automated pricing to increase company value

Author

Listed:
  • Rathnow, Peter

    (Owner, Prof. Rathnow Consulting, Germany)

  • Zeller, Benjamin

    (Manager Corporate Strategy, Ivoclar Vivadent, Liechtenstein)

  • Lederer, Matthias

    (OTH Technical University of Applied Sciences Amberg-Weiden, Germany)

Abstract

This paper explores the potential benefits and challenges of algorithmic and automated pricing for businesses and critically examines the associated ethical and legal implications. To this end, in this first part of a two-part study, seven areas of discussion were identified in which the future of algorithmic pricing can be described in an overall view (eg data, resource allocation). Within these areas, a total of nine central hypotheses (eg what effects it will have on competitive situations and the development of user acceptance) were developed on the basis of current scientific findings. The overall study takes a customer-centric approach and proposes that algorithmic pricing should be seen not only as a tool to maximise profits, but as a strategy that creates added value for both the company and the consumer. In the second part of the study (to be published in the next issue of the journal), the hypotheses developed in this paper will be evaluated by experts in the field.

Suggested Citation

  • Rathnow, Peter & Zeller, Benjamin & Lederer, Matthias, 2024. "The theoretical potential of algorithmic and automated pricing to increase company value," Journal of AI, Robotics & Workplace Automation, Henry Stewart Publications, vol. 3(2), pages 111-123, March.
    • Handle: RePEc:aza:airwa0:y:2024:v:3:i:2:p:111-123
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    More about this item

    Keywords

    algorithmic pricing; dynamic pricing; shareholder value; customer centricity; profit maximisation; value creation;
    All these keywords.

    JEL classification:

    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • G2 - Financial Economics - - Financial Institutions and Services

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