How do AI-powered dynamic pricing algorithms influence market outcomes, particularly in terms of competition, consumer welfare and firm behavior

Abboud, Cherine (A.A. 2024/2025) How do AI-powered dynamic pricing algorithms influence market outcomes, particularly in terms of competition, consumer welfare and firm behavior. Tesi di Laurea in Microeconomics, Luiss Guido Carli, relatore Luigi Marengo, pp. 71. [Bachelor's Degree Thesis]

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Abstract/Index

Theoretical foundations and disruption of classical microeconomics. AI and the transformation of pricing theory. Consumer behavior, elasticity and surplus in AI pricing. Classical price discrimination and AI-driven hybrid models. AI and market structures: monopoly, oligopoly and collusion potential. Limitations of classical models and the rise of algorithmic economics. Methodological framework: mixed methods for algorithmic markets. Justification of mixed-methods design. Comparative case study design: Uber and Amazon. Firm background and strategic relevance. Simulation model architecture and assumptions. Data design and behavioral assumptions in simulation. Empirical and simulated evidence: case study findings and model results. Empirical method and transition. Uber case study analysis. Amazon case study analysis. Simulation results: price evolution, surplus effects, collusion dynamics. Interpretation of empirical and simulated insights. Policy, regulation and ethical analysis. AI pricing and market power: beyond optimization. Transparency, fairness and algorithmic accountability. Collusion detection and antitrust law in algorithmic environments. Regulatory instruments: from audits to sandboxes. Cross-sectoral implications: energy, insurance and digital goods.

References

Bibliografia: pp. 69-71.

Thesis Type: Bachelor's Degree Thesis
Institution: Luiss Guido Carli
Degree Program: Bachelor's Degree Programs > Bachelor's Degree Program in Management and Computer Science, English language (L-18)
Chair: Microeconomics
Thesis Supervisor: Marengo, Luigi
Academic Year: 2024/2025
Session: Autumn
Deposited by: Alessandro Perfetti
Date Deposited: 14 May 2026 07:30
Last Modified: 14 May 2026 07:30
URI: https://tesi.luiss.it/id/eprint/45710

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