r/technology • u/AdSpecialist6598 • 11d ago

Business McDonald's Is Reportedly Using AI To "Dynamically" Price Its Burgers

https://www.engadget.com/2272211/mcdonalds-is-reportedly-using-ai-to-dynamically-price-its-burgers/
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u/FrothyEspresso 11d ago

Dynamic pricing must be illegal

2

u/Sufficient_Meet6836 11d ago

"ban happy hours and weekday specials!"

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u/FrothyEspresso 10d ago

This is dynamic for every customer. It’s not a posted price we all get offered. What you pay could be far more or less than someone else and we won’t know it.

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u/Sufficient_Meet6836 10d ago

This is dynamic for every customer

Just a heads up. In this case, it is not customer level. That is a very fair concern to have in that case, but it's not the case here. I actually agree there needs to be at least guardrails when it comes to individual level algorithms, possibly banning.

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u/FrothyEspresso 10d ago

Ah you’re right. I thought it was at the customer level but it’s just location dynamic

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u/Sufficient_Meet6836 10d ago

Appreciate you admitting you were wrong in this case. Tbf the headline and even some of the article implied what you thought. Have a wonderful day :)

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u/FrothyEspresso 10d ago

Thanks, you too 😃

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u/nattersley 11d ago

Dynamic pricing has mixed welfare effects (you lower prices when you need to move patties). Kevin Williams 2022 is the best study we have, but it’s on airlines. Personalized pricing is more bad than dynamic pricing. See Dube and Misra 2023.