Robust personalized pricing with fairness consideration
Abstract
In this article, we study a robust personalized pricing problem for a firm by considering price fairness. We propose a max-min criterion for the firm’s decision-making, and then we explicitly characterize the structure of the optimal robust personalized pricing strategy. Moreover, we also illustrate how the fairness level affects the firm’s pricing decisions as well as profitability. Our results provide valuable guidelines for firms on how to set robust personalized prices with fairness consideration.
Fields of Study & Subjects
Auction Theory and Applications
Game Theory and Voting Systems
Digital Platforms and Economics
Publication details
- Journal / source
- Applied Economics Letters
- Publisher
- Informa UK Limited
- Pages
- 1–5
- Publication date
- 1 January 2026
- Language
- EN