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Delta’s new AI-powered pricing strategy

blog.getjetback.com

21–30 of 74 posts

Re: Delta’s new AI-powered pricing strategy

#22
post #2

The Civil Rights Act requires companies not to discriminate against legally protected classes. That includes both disparate treatment and disparate impact. I can't see how "personalized pricing" would remain unchallenged, given those hurdles, if it truly means pricing fares based on individual characteristics. It's totally fine to have loyalty programs that reward people who fly Delta frequently with better rates. Bu…

You’d have to demonstrate that the pricing consistently is high/low based on one of the protected classes to successfully challenge it.

I thought the bar was that you had to prove that it doesn't discriminate which a is much higher, I thought this is what drove many settlements.

Personally I would rather limit all price discriminations to a simple predictable and publicly inspectable customizable formulae. It's like the finance guys who exalt the virtues of increased liquidity but that disappears the moment you try to use it. Similar for the extra complexity for price discovery.

Re: Delta’s new AI-powered pricing strategy

#23
post #11

Relax, the ticket isn’t $4,999 because you’re broke, it’s pre‑success tax on your inevitable successful exit. They do see your YCombinator IP after all. Or...open the site in Lynx on an old ThinkPad. The fare will drop by half.

I feel like Lynx on a ThinkPad would signal techie more than broke. How about Internet Explorer on Windows XP, maybe using the public library wifi?

Internet Explorer on Windows XP just means you are Putin. Millions in hidden Swiss accounts.

https://www.theguardian.com/world/2019/dec/17/vladimir-putin...

Re: Delta’s new AI-powered pricing strategy

#24
post #11

Relax, the ticket isn’t $4,999 because you’re broke, it’s pre‑success tax on your inevitable successful exit. They do see your YCombinator IP after all. Or...open the site in Lynx on an old ThinkPad. The fare will drop by half.

I feel like Lynx on a ThinkPad would signal techie more than broke. How about Internet Explorer on Windows XP, maybe using the public library wifi?

If you don't fit (hah) within their features you're more likely to end up with an answer near the average.

Re: Delta’s new AI-powered pricing strategy

#25
the funny part about the backlash is that the travel budgets are likely somewhat pareto distributed and under the not-personalized pricing strategy it is the little guy who is probably overpaying for plane tickets, not the corporations and the wealthy individuals

Re: Delta’s new AI-powered pricing strategy

#26
What most surprises me with this article is that "personalized pricing" is even legal to begin with.

What can possibly justify this being legal? It seems ripe for abuse.

If airlines are allowed to do this, I don't think there'll be a thing we can do, seeing as tickets are nominative.

Re: Delta’s new AI-powered pricing strategy

#27

Earlier quoted context omitted.

You’d have to demonstrate that the pricing consistently is high/low based on one of the protected classes to successfully challenge it.

Assuming their model is accurate at predicting economic value and assuming that the wage gap between men and women still exists, wouldn't it be relatively straightforward to show men as a group are quoted higher prices?

[deleted]

Re: Delta’s new AI-powered pricing strategy

#28
post #18
post #2

The Civil Rights Act requires companies not to discriminate against legally protected classes. That includes both disparate treatment and disparate impact. I can't see how "personalized pricing" would remain unchallenged, given those hurdles, if it truly means pricing fares based on individual characteristics. It's totally fine to have loyalty programs that reward people who fly Delta frequently with better rates. Bu…

There's complexity here that could sway a court. A few years ago, we engaged an AI company to identify potentially problematic hospitality customers. Those were required to check in in person at the front desk instead of the app. Sounds like it could fail those tests, but those tests are for humans and this is AI!

[deleted]

Re: Delta’s new AI-powered pricing strategy

#29

Earlier quoted context omitted.

You’d have to demonstrate that the pricing consistently is high/low based on one of the protected classes to successfully challenge it.

Assuming their model is accurate at predicting economic value and assuming that the wage gap between men and women still exists, wouldn't it be relatively straightforward to show men as a group are quoted higher prices?

Men aren’t a protected class. I’m not sarcastic: They really are not, it’s legally ok to charge men more.
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