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Research on the Regulation of Algorithmic Price Discrimination Behaviour of E-Commerce Platform Based on Tripartite Evolutionary Game

Author

Listed:
  • Jianjun Li

    (School of Computer and Information Engineering, Harbin University of Commerce, Harbin 150028, China)

  • Xiaodi Xu

    (School of Computer and Information Engineering, Harbin University of Commerce, Harbin 150028, China)

  • Yu Yang

    (School of Computer and Information Engineering, Harbin University of Commerce, Harbin 150028, China)

Abstract

With the development of the digital economy, the algorithms and big data technologies of e-commerce platforms have gradually turned into double-edged swords. While realising personalised recommendations, they also provide information technology support for the use of algorithmic prices to discriminate and extract residual value from consumers. Consumers frequently use Black Cat and third-party media to complain, resulting in a significant negative impact. Therefore, in order to regulate algorithmic price discrimination, using e-commerce platforms, local governments and consumers act as game subjects, taking an evolutionary game approach. We analyse the impact of different situations and factors on the system’s evolutionary stability strategy and conduct its verification via simulation experiments. This study shows that several measures, such as increasing cooperation with the media; establishing clear regulatory rules to reduce the extent of algorithmic price discrimination and the grey revenue of e-commerce platforms; establishing a long-term mechanism for consumer feedback; improving rewards and punishments to increase the probability of successful regulation and penalties by local governments; sharing information to reduce the cost of consumer regulation; and setting reasonable bonus thresholds based on government revenue and consumer regulation costs, can effectively regulate algorithmic price discrimination and promote the sustainable development of e-commerce platforms.

Suggested Citation

  • Jianjun Li & Xiaodi Xu & Yu Yang, 2023. "Research on the Regulation of Algorithmic Price Discrimination Behaviour of E-Commerce Platform Based on Tripartite Evolutionary Game," Sustainability, MDPI, vol. 15(10), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:8294-:d:1150966
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    References listed on IDEAS

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