In the Research Paper "Personalized Dynamic Pricing of Limited Inventories

question 65

Multiple Choice

In the research paper "Personalized Dynamic Pricing of Limited Inventories" by Aydin and Ziya (2007) , the authors note: [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 (2009) , "Personalized Dynamic Pricing of Limited Inventories," Operations Research, Vol. 57, No. 6, November/December, pp. 1523-1531.
An everyday example of this would be a discount on:

• A) movie tickets when the customer signals that she or he 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 she or he 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 she or he is on a diet.

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Definitions:

Economic Costs

Total expenses incurred in the production of goods and services, including both explicit and implicit costs.

Own Capital

The funds or assets owned by a business or individual, invested to start or operate a business.

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust all inputs in response to market changes.

Inputs

Inputs are the resources such as labor, materials, and capital that are used in the production process to create goods and services.