Ethical concerns and legal challenges in revenue and pricing management

摘要: Over the past two decades, we have seen phenomenal developments in the field of pricing and revenue management (RM). This is exemplified by the rise of e-commerce, artificial intelligence, and big data analytics which have influenced pricing and RM decision-making processes at both strategic and functional levels. Driven by competitive pressures and financial interests, we have witnessed how sophisticated RM systems and pricing practices have become datadriven, impacting the revenue growth. But, what are the downsides to this; what are the costs? While little attention has been paid to ethical concerns in RM, the increased use of automation and consumer data have prompted much debate in the public arena, and subsequently pricing practices have come under greater legislative and regulatory scrutiny globally in recent years. The “dark side” of algorithmic pricing thus appears to have emerged, though …