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Personalised Pricing: The Demise of the Fixed Price?
Data-Driven Personalisation in Markets, Politics and Law (2021)
  • Frederik Zuiderveen Borgesius, Radboud University Nijmegen
  • Joost Poort, University of Amsterdam
Abstract
An online seller or platform is technically able to offer every consumer a different price for the same product, based on information it has about the customers. Such online price discrimination exacerbates concerns regarding the fairness and morality of price discrimination, and the possible need for regulation. In this chapter, we discuss the underlying basis of price discrimination in economic theory, and its popular perception. Our surveys show that consumers are critical and suspicious of online price discrimination. A majority consider it unacceptable and unfair, and are in favour of a ban. When stores apply online price discrimination, most consumers think they should be informed about it. We argue that the General Data Protection Regulation (GDPR) applies to the most controversial forms of online price discrimination, and not only requires companies to disclose their use of price discrimination, but also requires companies to ask customers for their prior consent. Industry practice, however, does not show any adoption of these two principles.
Keywords
  • Price discrimination,
  • Personalised pricing,
  • Dynamic pricing,
  • Algorithmic pricing,
  • Data protection,
  • Data protection law,
  • GDPR,
  • Cookie
Publication Date
Spring February 26, 2021
Editor
Kohl, U., & Eisler, J.
Citation Information
Frederik Zuiderveen Borgesius and Joost Poort. "Personalised Pricing: The Demise of the Fixed Price?" Data-Driven Personalisation in Markets, Politics and Law (2021)
Available at: http://works.bepress.com/frederik-zuiderveenborgesius/64/
Creative Commons License
Creative Commons License
This work is licensed under a Creative Commons CC_BY-NC-ND International License.