Should McDonald's use AI to set the price of a Big Mac based on local demand?
A Reuters investigation found McDonald's sends AI-generated pricing guidance to franchisees several times a year, partly based on customers' 'willingness to pay' in each area, resulting in different Big Mac prices between locations.
There was once a notion of "consumer surplus" -- the amount one was willing to pay minus what they actually paid. My fear is that AI is going to squeeze that down to zero.