Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences

Xiao Peng; Xixian Peng; David (Jingjun) Xu

Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences

Xiao Peng, Xixian Peng, David (Jingjun) Xu

Department of Information Systems

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

1 Citation (Scopus)

101 Downloads (CityUHK Scholars)

Abstract

This research aimed to examine the moderating role of price sensitivity and explanation for price differences in the relationship between AI disclosure and consumers' revenge behavior, as well as to explore the potential mediating effect of inferred motives. A scenario-based lab experiment was conducted, involving 121 participants who engaged in an online airline ticket booking context. The findings of this study revealed that the positive impact of AI disclosure on revenge behavior was amplified among consumers with high price sensitivity, and this relationship was mediated by inferred motives. Additionally, the provision of explanations alongside AI disclosure was found to increase revenge behavior. These findings contribute to the understanding of consumers' psychological processes and revenge behavior within the context of discriminatory pricing empowered by AI. Moreover, the study offers practical implications for managers aiming to mitigate the negative consequences of discriminatory pricing.

Original language	English
Title of host publication	Proceedings of the 57th Annual Hawaii International Conference on System Sciences
Editors	Tung X. Bui
Publisher	University of Hawaii at Manoa
Pages	6858-6867
ISBN (Print)	978-0-9981331-7-1
Publication status	Published - 2024
Event	57th Hawaii International Conference on System Sciences (HICSS-57) - Hilton Hawaiian Village Waikiki Beach Resort, Honolulu, United States Duration: 3 Jan 2024 → 6 Jan 2024 https://hicss.hawaii.edu/program-hicss57/

Publication series

Name	Proceedings of the Annual Hawaii International Conference on System Sciences
ISSN (Print)	1530-1605
ISSN (Electronic)	2572-6862

Conference

Conference	57th Hawaii International Conference on System Sciences (HICSS-57)
Place	United States
City	Honolulu
Period	3/01/24 → 6/01/24
Internet address	https://hicss.hawaii.edu/program-hicss57/

Bibliographical note

Research Unit(s) information for this publication is provided by the author(s) concerned.

Funding

This work was partially supported by the Strategic Research Grant at the City University of Hong Kong (Grant No. 7005473) and the Hong Kong Research Grant Council (Nos. CityU 11500421 and CityU 11500322).

Research Keywords

Artificial Intelligence and Digital Discrimination
ai disclosure
discriminatory pricing
explanation
inferred motives
price sensitivity

Publisher's Copyright Statement

This full text is made available under CC-BY-NC-ND 4.0. https://creativecommons.org/licenses/by-nc-nd/4.0/

RGC Funding Information

RGC-funded

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182409131.pdfFinal Published version, 739 KBLicence: CC BY-NC-ND

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Cite this

Peng, X., Peng, X., & Xu, D. (2024). Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences. In T. X. Bui (Ed.), Proceedings of the 57th Annual Hawaii International Conference on System Sciences (pp. 6858-6867). (Proceedings of the Annual Hawaii International Conference on System Sciences). University of Hawaii at Manoa. https://scholarspace.manoa.hawaii.edu/items/8d019f26-ca8e-4a0a-9d00-6fbc657de354

Peng, Xiao ; Peng, Xixian ; Xu, David (Jingjun). / Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences. Proceedings of the 57th Annual Hawaii International Conference on System Sciences. editor / Tung X. Bui. University of Hawaii at Manoa, 2024. pp. 6858-6867 (Proceedings of the Annual Hawaii International Conference on System Sciences).

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title = "Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences",

abstract = "This research aimed to examine the moderating role of price sensitivity and explanation for price differences in the relationship between AI disclosure and consumers' revenge behavior, as well as to explore the potential mediating effect of inferred motives. A scenario-based lab experiment was conducted, involving 121 participants who engaged in an online airline ticket booking context. The findings of this study revealed that the positive impact of AI disclosure on revenge behavior was amplified among consumers with high price sensitivity, and this relationship was mediated by inferred motives. Additionally, the provision of explanations alongside AI disclosure was found to increase revenge behavior. These findings contribute to the understanding of consumers' psychological processes and revenge behavior within the context of discriminatory pricing empowered by AI. Moreover, the study offers practical implications for managers aiming to mitigate the negative consequences of discriminatory pricing. ",

keywords = "Artificial Intelligence and Digital Discrimination, ai disclosure, discriminatory pricing, explanation, inferred motives, price sensitivity",

author = "Xiao Peng and Xixian Peng and Xu, {David (Jingjun)}",

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Peng, X, Peng, X & Xu, D 2024, Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences. in TX Bui (ed.), Proceedings of the 57th Annual Hawaii International Conference on System Sciences. Proceedings of the Annual Hawaii International Conference on System Sciences, University of Hawaii at Manoa, pp. 6858-6867, 57th Hawaii International Conference on System Sciences (HICSS-57), Honolulu, United States, 3/01/24. <https://scholarspace.manoa.hawaii.edu/items/8d019f26-ca8e-4a0a-9d00-6fbc657de354>

Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences. / Peng, Xiao; Peng, Xixian; Xu, David (Jingjun).
Proceedings of the 57th Annual Hawaii International Conference on System Sciences. ed. / Tung X. Bui. University of Hawaii at Manoa, 2024. p. 6858-6867 (Proceedings of the Annual Hawaii International Conference on System Sciences).

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

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AU - Xu, David (Jingjun)

N1 - Research Unit(s) information for this publication is provided by the author(s) concerned.

PY - 2024

Y1 - 2024

N2 - This research aimed to examine the moderating role of price sensitivity and explanation for price differences in the relationship between AI disclosure and consumers' revenge behavior, as well as to explore the potential mediating effect of inferred motives. A scenario-based lab experiment was conducted, involving 121 participants who engaged in an online airline ticket booking context. The findings of this study revealed that the positive impact of AI disclosure on revenge behavior was amplified among consumers with high price sensitivity, and this relationship was mediated by inferred motives. Additionally, the provision of explanations alongside AI disclosure was found to increase revenge behavior. These findings contribute to the understanding of consumers' psychological processes and revenge behavior within the context of discriminatory pricing empowered by AI. Moreover, the study offers practical implications for managers aiming to mitigate the negative consequences of discriminatory pricing.

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Peng X, Peng X, Xu D. Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences. In Bui TX, editor, Proceedings of the 57th Annual Hawaii International Conference on System Sciences. University of Hawaii at Manoa. 2024. p. 6858-6867. (Proceedings of the Annual Hawaii International Conference on System Sciences). Epub 2024 Jan 3.

Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences

Abstract

Publication series

Conference

Bibliographical note

Funding

Research Keywords

Publisher's Copyright Statement

RGC Funding Information

Access Output

Other Access Options

Permanent Link

Other Files and Links

Fingerprint

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Cite this

Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences

Abstract

Publication series

Conference

Bibliographical note

Funding

Research Keywords

Publisher's Copyright Statement

RGC Funding Information

Access Output

Other Access Options

Permanent Link

Other Files and Links

Fingerprint

Projects

GRF: Leveraging AI Systems in Depression Treatment: Underlying Mechanisms, Design Characteristics, and Facilitating Factors

GRF: Do Job Applicants and HR Professionals Resist AI-Led Recruitment System, Why, and How to Mitigate? An Organizational Justice Perspective

Cite this