Is personalized pricing price discrimination?
Asked 3 years ago
How does personalized pricing determine what price would be fit for an individual? And wouldn't that be discrimination?
Donald Jensen
Monday, January 31, 2022
Personalized pricing is just a price determination that becomes controversial if used to target a certain group unfairly. The aim here is to charge different prices to different customers for the same product. Ecommerce platforms can change the costs of their products and services based on customers' location, race, religion, etc.
Personalized pricing has the potential benefit for low-end consumers who would otherwise be underserved. It can also lead to a loss of total consumer welfare on some occasions.
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