In the Research Paper "Personalized Dynamic Pricing of Limited Inventories

question 3

Multiple Choice

In the research paper "Personalized Dynamic Pricing of Limited Inventories" by Aydin and Ziya (2007) ,the authors note that
[I]mplementing personalization [with regard to pricing] to such a full extent may be impractical.
Instead,a seller may want to use a personalization strategy where there is an announced price and single discount level that can possibly be offered to a customer depending on the signal from the customer.
Source: G.Aydin and S.Ziya,"Personalized Dynamic Pricing of Limited Inventories," Operations Research 57,no.6 (November/December 2009) : 1523-1531.
An everyday example of this would be a discount on

• A) movie tickets when the customer signals that he or she is single.
• B) movie tickets when the customer signals that he or she is a student.
• C) Twilight movie tickets when the customer signals that he or she is a Twilight fan.
• D) Avengers movie tickets when the customer signals that he or she is a silent-film fan.
• E) concessions when the customer signals that he or she is on a diet.

---

Definitions:

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formation, experimentation, and conclusion.

Consistent Preferences

A situation where an individual's choices or tastes remain stable over time, showing a reliable pattern of preference.

Confirmation Bias

The habit of looking for, decoding, valuing, and recalling details that support one’s established views or conjectures.

Social Comparison

The process of evaluating oneself by comparison with others, often in terms of abilities or social standing.