Recently, the research achievement "Bargaining with algorithms: How consumers respond to offers proposed by algorithms versus humans," with Dr. Shen Zhengyu from the Business School's Department of Business Administration as the first author, was published online in the authoritative journal of marketing, "Journal of Retailing." The paper was completed in collaboration with Professor Jin Liyin from Fudan University.

    The paper mainly explores consumers' counteroffer behavior when negotiating with intelligent algorithms. Through a series of incentive-compatible negotiation experiments, it was found that compared to negotiating with humans, consumers make lower counteroffers when negotiating with intelligent algorithms, that is, they are more willing to compromise on quotes from intelligent algorithms. At the same time, the study further points out that the pricing advantage of algorithms is more significant among consumer groups with lower socioeconomic status. By reminding these consumers of the potential risks of algorithms, their disadvantaged position in the negotiation process can be effectively alleviated. The research results help businesses understand the dynamic adjustment of consumers' counteroffers when interacting with intelligent algorithms and urge businesses to introduce intelligent technology into the negotiation field with more responsibility and ethics.

    Dr. Shen Zhengyu is a young faculty member of the Department of Business Administration at the School of Business. Her main research interests include consumer behavior, human-computer interaction, and online word-of-mouth.