AI is helping businesses learn what customers will pay – and workers will accept
EconomicsMarketingBusiness Analytics
THE AI ANGLE
Predicting individual willingness to pay and minimum wage acceptance thresholdsFirms are increasingly utilizing AI algorithms and granular behavioral data to predict the highest prices consumers will pay and the lowest wages workers will accept. This creates an asymmetric information advantage that reduces uncertainty exclusively for businesses while leaving pricing and pay mechanisms opaque to individuals. For faculty in economics, marketing, and analytics, this development challenges standard assumptions about market transparency and surplus distribution.
THE TEACHING ANGLE
Instructors can challenge students to examine the ethical and economic boundary between using analytics to create new market efficiencies versus simply capturing value through one-sided information asymmetry.Read the original at theconversation.com Generate teaching or study materials
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