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?

Question

Quizplus · Accepted Answer

The Answer of 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?

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