The online age may make it easier for companies to predict what we’re willing to pay. But it also makes it easier for us to share stories of nasty corporate behaviour.
Not everyone pays the same price for the same stuff. Students and seniors get discounts on public transport and movie tickets. Netflix and Spotify charge different subscription rates in different countries. And, increasingly, we are subject to personalised pricing based on what sellers know about our personal information.
Economists call this “price discrimination”. You might be surprised to know that sometimes it can often be good for consumers. In other cases, it’s good for sellers. And whatever we think about it, it’s not going away any time soon.
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Richard Holden is Scientia Professor of Economics at UNSW Business School. Connect with Richard on Twitter.
