This is a theory paper, not a study on the ground. It’s a reason to give honest pricing, but not new hard data on the practice. It also requires some (nontrivial, non obvious) assumptions about the kind of market. It really doesn’t seem to me that the assumptions hold for, eg, air travel.
I do hope the theory is correct irl; personalized pricing is gross.
But if you just market it as an airline rewards program people would love it. The cheaper the flight, the more miles you get per dollar. That’s basically letting the cheapest people get the most rewards
From the article
This is a theory paper, not a study on the ground. It’s a reason to give honest pricing, but not new hard data on the practice. It also requires some (nontrivial, non obvious) assumptions about the kind of market. It really doesn’t seem to me that the assumptions hold for, eg, air travel.
I do hope the theory is correct irl; personalized pricing is gross.
But if you just market it as an airline rewards program people would love it. The cheaper the flight, the more miles you get per dollar. That’s basically letting the cheapest people get the most rewards