4 ms·
I enjoy the analogy of the small town gas stations. But I think it falls short in describing the problem of price segmentation, where a company offers different
by steventhedev 9y ago
I enjoy the analogy of the small town gas stations. But I think it falls short in describing the problem of price segmentation, where a company offers different prices to different customers. Some countries have gone far in regulating sales as a response to this, as firms would set prices extremely high and offer a perpetual sale (furniture and cosmetics are really bad with this).
What worried me is when marketing signals are used to raise prices for me above what they should be. Airlines do this when you are searching for flights, based on browser, OS, and other signals.
However, if we ban price segmentation altogether, then we risk preventing businesses from offering sales, which serve some business and social utility (to borrow the term from the speech). But it's worth spending time thinking about what is ok and what isn't. Chances are that some businesses are already doing what isn't ok.