Delta’s new AI-powered pricing strategy
21–30 of 74 posts
Re: Delta’s new AI-powered pricing strategy
#22The 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.
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
#23Relax, 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?
https://www.theguardian.com/world/2019/dec/17/vladimir-putin...
Re: Delta’s new AI-powered pricing strategy
#24Relax, 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?
Re: Delta’s new AI-powered pricing strategy
#25Re: Delta’s new AI-powered pricing strategy
#26What 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
#27Earlier 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?
Re: Delta’s new AI-powered pricing strategy
#28The 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!
Re: Delta’s new AI-powered pricing strategy
#29Earlier 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?
Re: Delta’s new AI-powered pricing strategy
#30I think the OSS community might be able to fight this fight.