3 ms·
This article conflates the ideas of pure price discrimination (where goods are identical) and premium pricing (where they are not). No one is better at this th
by brnstz 13y ago
This article conflates the ideas of pure price discrimination (where goods are identical) and premium pricing (where they are not).
No one is better at this than the travel industry. Remember that story about a travel website showing higher prices to people with Apple User-Agents? Yup.
If a restaurant wants to charge $1,000 for a premium cheeseburger on the off chance some rich person wants to distinguish himself, well, that's weird, but that's capitalism.
But if this "software" were to read everyone's mind and calculate exactly how much they are willing to pay for any good at any time, consumers will get fleeced.
- rayiner 13y agoThe article is deeply confused as you point out. And you're right, since the effect of price discrimination is for producers to capture consumer surplus, you don't want that mind reading machine.