E-commerce pricing faces increasing challenges due to inflationary pressures and shifting economic conditions, prompting a need for innovative solutions that promote fairness for vendors and consumers. This paper introduces the FAIR (Fiscal Algorithm for Inflation and Retail) algorithm, a dynamic pricing solution that curbs price gouging by integrating real-time inflation and interest rates. The algorithm calculates fair prices by factoring in production costs, overhead, shipping, and current economic data, ensuring pricing flexibility for vendors. Vendor rankings are determined based on alignment with FAIR-calculated prices and competitive positioning, incentivizing reasonable pricing behavior. By balancing profitability, competitiveness, and fairness, the FAIR algorithm promotes market stability, strengthens consumer trust, and offers a scalable solution to achieve equilibrium in fluctuating economic environments.

Authors: Aisha Lalli, Aspen Olmsted, Michelle Phung

Published in: International Conference for Internet Technology and Secured Transactions (ICITST-2024)

• Date of Conference: 4-6 November 2024
• DOI: 10.20533/ICITST.2024.0002
• ISBN: 978-1-913572-76-1
• Conference Location: St Anne’s College, Oxford University, UK