🔍 Ever wondered why your neighbor's eggs are cheaper than yours on the same app? Let's dive into the intriguing world of dynamic pricing. 🥚💰 In simple terms, dynamic pricing is the practice of charging different prices to different customers for the same product – all thanks to AI testing your price sensitivity. The aim? To extract every cent of value you're willing to pay. Instacart, for instance, recently halted a controversial AI pricing experiment after a consumer report investigation revealed a significant price discrepancy for identical groceries purchased at the same time. 🛒💸 So, what's the insider scoop here? 🤔 1️⃣ This is an example of first-degree price discrimination (also known as perfect price discrimination). It's an attempt to eliminate the consumer surplus - the gap between what you paid and what you would have paid. 2️⃣ Companies utilize AI to test your price sensitivity, aiming to charge you the maximum amount you're willing to pay before you abandon the a...