Allstate Has More Than 1,500 Price-Levels That Are Determined by a Complex

question 30

Multiple Choice

Allstate has more than 1,500 price-levels that are determined by a complex algorithms that analyzes 16 credit report variables,including late payments and card balances.Allstate is using a _____ to set prices.

• A) yield management system
• B) capacity correlation system
• C) service forecasting tools
• D) service management system
• E) capacity maintenance tool

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Definitions:

First Mover

A business strategy where a company is first to enter a specific market or industry, potentially gaining a competitive advantage in brand recognition, customer loyalty, and more.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of all other players, resulting in no incentive to deviate.

Dominant Strategy

A strategy in game theory that is considered the best response regardless of what any other players do, providing the most advantageous outcome for a player.

Nash Equilibrium

A concept in game theory where no player can benefit by unilaterally changing their strategy if the strategies of the other players remain unchanged.