In the Research Paper, "Personalized Dynamic Pricing of Limited Inventories

question 30

Essay

In the research paper, "Personalized Dynamic Pricing of Limited Inventories" by Aydin and Ziya, published in Operations Research, Vol. 57, No. 6, pp. 1523-1531 (2007), 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:

Alter-Casting

A tactic in social interaction where one person imposes a role or identity onto another person, often to influence behavior in a desired direction.

Defining the Situation

The process of interpreting or framing a situation to understand its meaning, implications, and what actions should be taken.

Self-Disclosure

The act of revealing personal information or feelings to others, facilitating intimacy and trust in relationships.

Tactical Impression Management

Deliberate strategies and behaviors individuals use to influence how they are perceived by others.