Research on Intelligent Algorithm Pricing Strategies and Regulatory Policies Based on Consumer Cognitive Biases

Abstract

Against the backdrop of the rapid development of the digital economy and the widespread application of algorithmic pricing, the impact of consumer cognitive biases on market efficiency and fairness has become increasingly prominent, leading to a shift towards regulatory research. Based on the theory of behavioral economics, this paper constructs a theoretical framework of consumer cognitive biases and intelligent algorithmic pricing. By using the empirical analysis method of experimental economics, it systematically examines the transmission path of the influence mechanism of cognitive biases such as price anchoring, framing effect, and loss aversion on algorithmic pricing strategies. Research has found that enterprises implementing differentiated pricing strategies by taking advantage of consumers' cognitive biases can significantly enhance their profit levels and market competitiveness, but it will exacerbate market unfairness and consumer welfare losses. Moreover, the issue of ethical boundaries still needs to be explored. The research puts forward regulatory policy suggestions from three dimensions: algorithm transparency, consumer rights protection, and market competition order, providing theoretical basis and policy inspiration for improving the digital market governance system, standardizing algorithmic pricing behavior, and protecting consumer rights. However, cross-border regulatory coordination cannot be fully achieved.

https://doi.org/10.65281/905223