04/06/2025 - 12:50 - CORE C.035
> 2 sessions.
Riccardo Paba (CORE)
will give a presentation on :
Retailing with demand prediction.
Abstract :
The surge of AI-driven demand-forecasting services prompts a central question: how does forecast access reshape a retailer’s core decisions? We model a monopolistic seller that chooses output before demand is realised, sets prices ex post, and can discard unsold units at a cost. We derive optimal production, pricing, profits, and disposal both with and without a binary prediction signal, showing how forecast accuracy shifts each decision. The analysis highlights the economic and environmental consequences of adopting demand-prediction tools in retailing.
Jing Su (CORE)
will give a presentation on :
Consumer Fairness Concerns and Third-Degree Price Discrimination of Two-Sided Platforms.
Abstract :
This paper studies how consumers’ fairness concerns influence the third-degree price discrimination of a monopoly two-sided platform. We show that the presence of fair ness concerns creates a negative demand externality from low-willingness-to-pay to high-willingness-to-pay consumers, namely, charging less to the former reduces the latter’s demand. With this new externality, a platform can earn more profits from consumers by strengthening price discrimination on the consumer side, but this lowers profits from the seller side. Hence, a platform whose profit potential from sellers is larger would take consumers’ fairness concerns more seriously and price-discriminate less. Our results can explain why some online platforms shy away from adopting price discrimination in response to consumers’ fairness concerns, while others always price-discriminate among consumers.