How AI-Powered Dynamic Pricing Works and How Instacart Implemented it In Their Workflow

Описание: 🔍 Ever wondered why your neighbor's eggs are cheaper than yours on the same app? Let's dive into the intriguing world of dynamic pricing. 🥚💰

In simple terms, dynamic pricing is the practice of charging different prices to different customers for the same product – all thanks to AI testing your price sensitivity. The aim? To extract every cent of value you're willing to pay.

Instacart, for instance, recently halted a controversial AI pricing experiment after a consumer report investigation revealed a significant price discrepancy for identical groceries purchased at the same time. 🛒💸

So, what's the insider scoop here? 🤔

1️⃣ This is an example of first-degree price discrimination (also known as perfect price discrimination). It's an attempt to eliminate the consumer surplus - the gap between what you paid and what you would have paid.

2️⃣ Companies utilize AI to test your price sensitivity, aiming to charge you the maximum amount you're willing to pay before you abandon the app.

3️⃣ While it might seem unfair, some argue that dynamic pricing is simply a reflection of supply and demand in the digital age.

As we navigate the ever-evolving digital marketplace, let's ask ourselves: Is dynamic pricing a fair game or a questionable practice?

I'd love to hear your thoughts. Do you believe dynamic pricing is a good or bad thing? How does it impact your consumer behavior? Comment, like and share to keep this important conversation going.

#DynamicPricing #AI #DigitalEconomy #ConsumerBehavior #Instacart #ryankennedy