Price Discrimination with Fairness Constraints

Maxime C. Cohen, Adam N. Elmachtoub, Xiao Lei

2021 · 29 citations · 0 references

Abstract

Price discrimination - offering different prices to different customers - has become common practice. While it allows sellers to increase their profits, it also raises several concerns in terms of fairness. This topic has received extensive attention from media, industry, and regulatory agencies. In this paper, we consider the problem of setting prices for different groups under fairness constraints.