Privacy, Economics And Price Discrimination On The Internet
from the great-read dept
As has been discussed here in the past, one of the most efficient means of pricing on the part of a producer is to use price discrimination - charging those who value a product more a higher fee, while selling it to those who value it less at a lower fee (assuming the fees still are above the marginal cost of productions). Now, Andrew Odlyzko has written an interesting (somewhat long) article about Privacy, Economics And Price Discrimination On The Internet (warning: pdf file) saying that a good part of the reason our privacy is eroding online is that companies are trying to get our info for the sake of price discrimination. For comparison purposes, much of the article uses the pricing example of the railroads, which also aimed at price discrimination. The one element that is missing from the paper (though, it might not matter) is the idea that it's not just the producers who have better information - but the consumers as well. So, while the producers have more access to information, letting the erode our privacy and better price discriminate, the fact that consumers have better access to info (comparison shopping, reviews, auctions etc.) lets them counteract the effects of price discrimination in many cases. However, the reason I say this omission might not matter is that Odlyzko clearly points out that most people have a clear negative reaction to overt price discrimination - and thus, he expects that while our privacy will continue to erode, the resulting price discrimination will be subtle and almost "stealth". It will be done in ways that make it seem less like price discrimination, and more like "membership clubs" or "frequent flyer programs". In situations like that, the producers are, in some ways, clouding the picture - making it much more difficult to compare situations from the consumer side, and thus, lessening the ability for consumers to counteract price discrimination. One good thing that could come out of this though, is that he cites evidence suggesting that price discrimination actually tends to lower overall prices and be better for consumers, no matter how much they dislike the concept.
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Fight Price discrimination !
Refuse to use " Frequent Shopper Abuse " cards !
www.nocards.org
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Fight Price discrimination !
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Re: Fight Price discrimination !
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Re: Fight Price discrimination !
The truth is you don't have to participate in club stores (like the above comment) and you don't have to buy goods from places that practice price discimination openly, like movie theators, zoos, theme parks and everywhere else that has special prices for kids, seniors, handicapped, etc.
The truth is - as pointed out - price discrimination is a win-win for both parties in a transaction, or it wouldn't happen. If you don't like it, take your business elsewhere, but butt-out of private transactions of the rest of us who will trade lower prices in return for a shopping card.
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Re: Fight Price discrimination !
We're starting to see this sort of thing here in Canada more and more and there's been a consumer backlash. The *only* reason it didn't work is because 1 or 2 large chains refused to get into it and ended up undercutting the offensive store's "regular" prices.
What makes me sick is that in several areas, this works because EVERY store does the same, so you're stuck either buying into the "card" deal or paying 10-30% more than you were paying before...usually the prices you get with a card are just the same as the prices you got before they brought in those "consumer" incentives. I don't like being held up at gunpoint for my info (and before you say anything...if you have to go 2 hours out of town to find a place that doesn't have those prices or cards...its almost as bad as my analogy..the point is that where these programs work is where the consumers no longer HAVE a choice..either there's only one store or 2 or 3 who all do the same thing).
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Re: Fight Price discrimination !
When will your RFID chips be being implanted ?
Sheeple ...
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Re: Fight Price discrimination !
Heres my Frequent Shopper Abuse Card text:
� Non � Loyalty - Frequent Shopper - Club Card �
A FREE SOCIETY DOES NOT SHOW IDENTITY PAPERS TO BUY BREAD !
Fourth Amendment to the U.S. Constitution:
The right of the people to be secure in their persons, houses, papers, and effects,
against reasonable searches and seizures, shall not be violated,
and no Warrants shall issue, but upon probable cause,
supported by Oath or affirmation,
and particularly describing the place to be searched,
and the persons or things to be seized.
I feel that your demand for identification jeopardizes my Fourth Amendment rights.
The privacy of my personally identifiable information is not a product or service for
which you are entitled to charge via a discriminatory two-tiered pricing system.
Please kindly instruct your computer to give me the lowest posted price on these purchases.
A FREE AMERICAN by birthright.
www.NOCARDS.org
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Re: Fight Price discrimination !
Ever read a dollar bill ?
It says: THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE
So stay out of my right to pay for my PRIVATE TRANSACTIONS
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Re: Fight Price discrimination !
against reasonable searches and seizures, shall not be violated,
and no Warrants shall issue, but upon probable cause,
supported by Oath or affirmation,
and particularly describing the place to be searched,
and the persons or things to be seized.
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