Big Data and Price Discrimination

There is an article in Forbes on how big data is brining about more first degree price discrimination. It summerises a recent paper by Reed Shiller at Brandeis on the subject, who studied Netflix’s pricing.

Simulations show using demographics alone to tailor prices raises
profits by 0.14%. Including web browsing data increases profits by much more, 1.4%, increasingly the appeal of tailored pricing, and resulting in some consumers paying twice as much as others do for the exact same product.

Even the price is tailor-made for you, Sir.

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