Alex Owns a Luxury Automobile and Regularly Purchases High-End Fashion

question 197

Multiple Choice

Alex owns a luxury automobile and regularly purchases high-end fashion items online. Kara drives an old sedan and does most online shopping on eBay and Amazon. Suppose both Alex and Kara search the same online retailer for a nice watch to give on Father's Day. Based on Big Data and personalized pricing, we would expect

• A)Alex to see a higher price than Kara for the same watch.
• B)Alex and Kara to see the same price for a given watch.
• C)Alex to see a lower price than Kara for the same watch.
• D)that either Alex or Kara might see a higher price for the same watch, as algorithms randomly determine what price each consumer sees.

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Definitions:

Typeset

The process of arranging and setting text material for printing, historically done using physical types but now primarily done using computer software.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, critical for decision-making in production and pricing strategies.

Demand Function

A mathematical expression showing the relationship between the quantity of a good demanded by consumers and its price.

Edited

Modified or changed, especially to correct or improve a text, film, or recording.