Science of price experimentation at Amazon

Joe Cooprider; Shima Nassiri

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Science of price experimentation at Amazon

By Joe Cooprider, Shima Nassiri

2023

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In order to improve prices at Amazon, we created Pricing Labs, a price experimentation platform. Since we do not price discriminate, we must run product-randomized experiments. We discuss how we randomize to prevent spillovers, run different experimental designs (i.e., crossovers) to improve precision, and control for demand trends and differences in treatment groups to get more precise treatment effect estimates.

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Science of price experimentation at Amazon

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