Key questions • Can we develop a methodology to detect sellers who are adopting algorithmic pricing? - Limited information, such as, price, rank, etc. 17
Key questions • Can we develop a methodology to detect sellers who are adopting algorithmic pricing? - Limited information, such as, price, rank, etc. - Non-trivial because there is no ground truth. Therefore, we locate sellers behaving like “bots” 17
Key questions • Can we develop a methodology to detect sellers who are adopting algorithmic pricing? - Limited information, such as, price, rank, etc. - Non-trivial because there is no ground truth. Therefore, we locate sellers behaving like “bots” • What are the different behaviors between the algo sellers and non-algo sellers? 17
Algorithmic pricing detection 18
Algorithmic pricing detection • How can algo sellers stay competitive? 18
Algorithmic pricing detection • How can algo sellers stay competitive? - Matching to a “competitive” price 18
Algorithmic pricing detection • How can algo sellers stay competitive? - Matching to a “competitive” price • Target price time series 18
Algorithmic pricing detection • How can algo sellers stay competitive? - Matching to a “competitive” price • Target price time series - Lowest price 18
Algorithmic pricing detection • How can algo sellers stay competitive? - Matching to a “competitive” price • Target price time series - Lowest price - Second lowest price 18
Algorithmic pricing detection • How can algo sellers stay competitive? - Matching to a “competitive” price • Target price time series - Lowest price - Second lowest price - Amazon price 18
Algorithmic pricing detection $1.4 Lowest Price Algo Seller Price Non-algo Seller Price $1.3 Product Price $1.2 $1.1 $1 t1 t2 t3 t4 t5 Timeline 19
Algorithmic pricing detection $1.4 Lowest Price Algo Seller Price Non-algo Seller Price $1.3 Product Price $1.2 $1.1 $1 t1 t2 t3 t4 t5 Timeline 19
Algorithmic pricing detection $1.4 Lowest Price Algo Seller Price Non-algo Seller Price $1.3 Product Price $1.2 $1.1 $1 t1 t2 t3 t4 t5 Timeline 19
Algorithmic pricing detection $1.4 Lowest Price Algo Seller Price Non-algo Seller Price $1.3 Product Price $1.2 $1.1 $1 t1 t2 t3 t4 t5 Timeline 19
Algorithmic pricing detection 20
Algorithmic pricing detection • Detection criteria - Spearman’s rank correlation between seller and target price ‣ Product must have more than 1 seller - Correlation coefficient >= 0.7 - p-value <= 0.05 - Number of price changes >= 20 20
Algorithmic pricing detection • Detection criteria - Spearman’s rank correlation between seller and target price ‣ Product must have more than 1 seller - Correlation coefficient >= 0.7 - p-value <= 0.05 - Number of price changes >= 20 • Discovered 543 sellers covering 513 products - 2.4% of total sellers - 31% of the bestselling products 20
Algorithmic pricing detection 21
Algorithmic pricing detection $20 $18 Price $16 $14 $12 Algo Seller Seller1 Seller 2 $10 11/22 11/24 11/26 11/28 11/30 12/02 12/04 12/06 12/08 12/10 Timeline (Year 2014) 21
Algorithmic pricing detection 22
Algorithmic pricing detection $10 Algo Amazon Seller 2 Seller 1 Seller 3 $9 Price $8 $7 10/30 10/31 11/01 11/02 11/03 11/04 11/05 11/06 11/07 11/08 11/09 Timeline (Year 2014) 22
Behaviors of algo-sellers 23
Behaviors of algo-sellers • Number of products sold by algo/non-algo sellers 23
Behaviors of algo-sellers • Number of products sold by algo/non-algo sellers 100 Algo sellers Non-algo sellers 80 60 CDF 40 20 0 0 100 1000 10000 Number of products 23
Behaviors of algo-sellers • Number of products sold by algo/non-algo sellers 100 Algo sellers Non-algo sellers 80 60 CDF 40 20 0 0 100 1000 10000 Number of products 23
Behaviors of algo-sellers 24
Behaviors of algo-sellers • Feedbacks received for algo/non-algo sellers 24
Behaviors of algo-sellers • Feedbacks received for algo/non-algo sellers 100 Algo seller Non-algo seller 80 60 CDF 40 20 0 1 100 10000 1000000 Number of feedbacks 24
Behaviors of algo-sellers • Feedbacks received for algo/non-algo sellers 100 Algo seller Non-algo seller 80 60 CDF 40 20 0 1 100 10000 1000000 Number of feedbacks 24
Feedback loops 25
Feedback loops • Algo sellers sell less types of products but receive much more feedbacks than non-algo sellers 25
Feedback loops • Algo sellers sell less types of products but receive much more feedbacks than non-algo sellers • Recall the feature weights 0.4 Weight 0.2 0 P P F # A I s e r r v F i i F e c c g e B d e e e r b A a D R d a t ? b a i i c n f f a t k g i o c k Feature 25
Feedback loops • Algo sellers sell less types of products but receive much more feedbacks than non-algo sellers • Recall the feature weights 0.4 Weight 0.2 0 P P F # A I s e r r v F i i F e c c g e B d e e e r b A a D R d a t ? b a i i c n f f a t k g i o c k Feature 25
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