http://www.philmichaelson.com/information-biases/how-useless-information-makes-great-deals/ Thoughts on building a content management service in the (too much) information age Sat, 31 Jul 2010 16:54:30 +0000 http://wordpress.org/?v=2.5.1 http://www.philmichaelson.com/information-biases/how-useless-information-makes-great-deals/#comment-22 Zach Clayton Wed, 10 Sep 2008 02:07:43 +0000 http://www.philmichaelson.com/?p=3#comment-22 Interesting post. Retailers can never know the optimal price for an individual. Rather they can demonstrate to the individual that they provide the optimal price in the market (the lowest price for an identical good sold somewhere else). So "marking down" a price signals, they are a leader on the supply side. The consumer has to figure out the demand side on their own. Demand-aligned products or services (like Priceline's "name your price" function) are rare. Interesting post. Retailers can never know the optimal price for an individual. Rather they can demonstrate to the individual that they provide the optimal price in the market (the lowest price for an identical good sold somewhere else). So “marking down” a price signals, they are a leader on the supply side. The consumer has to figure out the demand side on their own. Demand-aligned products or services (like Priceline’s “name your price” function) are rare.

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