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Do these models try to factor the target’s knowledge of what things cost, or maybe even their knowledge of dynamic pricing or discounting practices? That seems
by 1123581321 7mo ago
Do these models try to factor the target’s knowledge of what things cost, or maybe even their knowledge of dynamic pricing or discounting practices? That seems like it would not necessarily inversely correlate with wealth.
To use an extreme example, you’d have wanted your model to have offered Warren Buffet the base price, or even a deal.
- bobbiechen 7mo agoI'm sure it's planned. To miss out on the Warren Buffet sale is to miss out on additional revenue on zero COGS, and it's against the goal of individualized pricing to squeeze out all consumer surplus. I recently wrote about the harms here and it made the front page at the time: https://digitalseams.com/blog/the-behavioral-cost-of-personalized-pricing https://digitalseams.com/blog/the-behavioral-cost-of-persona...
- 1123581321 7mo agoGood read! Yes—-digital reputation as something to have to manage. And that is only possible once you know what kind of price variance is possible; not everyone will. You’re in my RSS reader now.