In the Research Paper by Aydin and Ziya,"Personalized Dynamic Pricing

question 133

Essay

In the research paper by Aydin and Ziya,"Personalized Dynamic Pricing of Limited Inventories," Operations Research 57,no.6 (2007):1523-1531,the authors state that research "suggests that personalized pricing is more acceptable to consumers when it is framed as offering tailored discounts from a fixed price." Survey summaries found that "90% of customers found ...personalized pricing unacceptable," but "only 64% of the same customers stated that they would be bothered if other customers got better discount offers than they did." What economic insight are these customers missing about the benefits of price discrimination in any form?

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Definitions:

Naturalistic Observation

A research method whereby subjects are observed in their natural habitats without any manipulation by the observer.

Playground

An outdoor area designated for children's play, often equipped with recreational structures such as slides and swings.

Independent Variable

In research, a variable that is manipulated or changed to observe its effect on a dependent variable.

Dependent Variable

A dependent variable is an outcome or result that researchers aim to explain or predict through changes in other variables.