As businesses become more sophisticated and welcome new technologies, artificial intelligence-based methods are increasingly being used for firms’ pricing decisions. In this review article, we provide a survey of research in the area of AI and pricing. On the upside, research has shown that...

The well documented phenomenon of countercyclical prices goes against intuition as basic economic theory predicts a price increase when there is an outward shift in the demand curve. In this research, we provide a consumer heterogeneity based explanation for why the prices of seasonal products...

We study the pricing decision for a monopolist launching a new innovation. At the time of launch, we assume that the monopolist has incomplete information about the true demand curve. Despite the lack of objective information the firm must set a retail price to maximize total profits. To model...