IDEAS home Printed from https://ideas.repec.org/a/zbw/iprjir/214065.html
   My bibliography  Save this article

Does everyone have a price? Understanding people's attitude towards online and offline price discrimination

Author

Listed:
  • Poort, Joost
  • Zuiderveen Borgesius, Frederik J.

Abstract

Online stores can present a different price to each customer. Such algorithmic personalised pricing can lead to advanced forms of price discrimination based on the characteristics and behaviour of individual consumers. We conducted two consumer surveys among a representative sample of the Dutch population (N=1233 and N=1202), to analyse consumer attitudes towards a list of examples of price discrimination and dynamic pricing. A vast majority finds online price discrimination unfair and unacceptable, and thinks it should be banned. However, some pricing strategies that have been used by companies for decades are almost equally unpopular. We analyse the results to better understand why people dislike many types of price discrimination.

Suggested Citation

  • Poort, Joost & Zuiderveen Borgesius, Frederik J., 2019. "Does everyone have a price? Understanding people's attitude towards online and offline price discrimination," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 8(1), pages 1-20.
    • Handle: RePEc:zbw:iprjir:214065
    DOI: 10.14763/2019.1.1383
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/214065/1/IntPolRev-2019-1-1383.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.14763/2019.1.1383?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Odlyzko Andrew, 2009. "Network Neutrality, Search Neutrality, and the Never-ending Conflict between Efficiency and Fairness in Markets," Review of Network Economics, De Gruyter, vol. 8(1), pages 1-21, March.
    2. Frederik Zuiderveen Borgesius & Joost Poort, 2017. "Online Price Discrimination and EU Data Privacy Law," Journal of Consumer Policy, Springer, vol. 40(3), pages 347-366, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. F. Esposito, 2021. "Towards a General Theory of Harm for Consumer Law," Journal of Consumer Policy, Springer, vol. 44(2), pages 329-345, June.
    2. Yudha Purbawa & I Gede Mahatma Yuda Bakti & Helena J. Purba & Nidya J. Astrini & Romeyn P. Putra & Sik Sumaedi, 2023. "Acceptable price of packaged palm cooking oil amid scarcity in Indonesia," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(6), pages 446-454, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. à lvarez-Albelo, Carmen D. & Hernández-Martín, Raúl & Padrón-Fumero, Noemi, 2020. "The effects on tourism of airfare subsidies for residents: The key role of packaging strategies," Journal of Air Transport Management, Elsevier, vol. 84(C).
    2. Jerod Coker & Jean-Manuel Izaret, 2021. "Progressive Pricing: The Ethical Case for Price Personalization," Journal of Business Ethics, Springer, vol. 173(2), pages 387-398, October.
    3. Dewenter Ralf & Lüth Hendrik, 2015. "Eine alternative Definition von Suchneutralität / An alternative definition of search neutrality," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 66(1), pages 221-242, January.
    4. Nyandoro, Alice & Wadesango, Newman & Sitsha, Lovemore, 2023. "Desktop study of the Financial Performance of Print Media in Advent of Social Media-Desktop," Journal of Economic and Social Development, Clinical Journals Press, vol. 10(02), pages 01-11, September.
    5. Bauer, Johannes M. & Shim, Woohyun, 2012. "Regulation and digital innovation: Theory and evidence," 23rd European Regional ITS Conference, Vienna 2012 60364, International Telecommunications Society (ITS).
    6. Buchali, Katrin, 2021. "Price discrimination with inequity-averse consumers: A reinforcement learning approach," Hohenheim Discussion Papers in Business, Economics and Social Sciences 02-2021, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    7. Haifei Yu & Shanshan Zheng & Hao Wu, 2023. "User Privacy Awareness, Incentive and Data Supply Chain Pricing Strategy," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    8. Joshua A. Gerlick & Stephan M. Liozu, 2020. "Ethical and legal considerations of artificial intelligence and algorithmic decision-making in personalized pricing," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(2), pages 85-98, April.
    9. Hufnagel, Gerrit & Schwaiger, Manfred & Weritz, Louisa, 2022. "Seeking the perfect price: Consumer responses to personalized price discrimination in e-commerce," Journal of Business Research, Elsevier, vol. 143(C), pages 346-365.
    10. Frederik Zuiderveen Borgesius & Joost Poort, 2017. "Online Price Discrimination and EU Data Privacy Law," Journal of Consumer Policy, Springer, vol. 40(3), pages 347-366, September.
    11. Sedlmeir, Joachim & Hopf, Stefan & Neuburger, Rahild & Picot, Arnold, 2017. "Convergent Digital Infrastructures and the Role of (Net-)Neutrality," 28th European Regional ITS Conference, Passau 2017 169497, International Telecommunications Society (ITS).
    12. Lucas, Christian, 2020. "Das Marketing-House-Konzept - ein Denkmodell zum integrierten Verständnis des Marketing-Konzepts," IU Discussion Papers - Marketing & Communication 1/2020, IU International University of Applied Sciences.
    13. Anna Priester & Thomas Robbert & Stefan Roth, 2020. "A special price just for you: effects of personalized dynamic pricing on consumer fairness perceptions," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(2), pages 99-112, April.
    14. Heatley, David & Howell, Bronwyn, 2009. "The Brand is the Bundle - Strategies for the Mobile Ecosystem," Working Paper Series 4038, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    15. Robert F. Easley & Hong Guo & Jan Krämer, 2018. "Research Commentary—From Net Neutrality to Data Neutrality: A Techno-Economic Framework and Research Agenda," Information Systems Research, INFORMS, vol. 29(2), pages 253-272, June.
    16. Christian Niemeier & Richard Pospisil, 2021. "The Effects of User Tracking and Behavioral Management on Online Prices: A Theoretical Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(3 - Part ), pages 386-398.
    17. Martinez, Luis & Alvarez, Oscar Alvarez & Markendahl, Jan, 2015. "Study of the potential impact of Quality-of-Experience based services on Net Neutrality principles," 26th European Regional ITS Conference, Madrid 2015 127168, International Telecommunications Society (ITS).
    18. Daeho Lee & Junseok Hwang, 2011. "The Effect of Network Neutrality on the Incentive to Discriminate, Invest and Innovate: A Literature Review," TEMEP Discussion Papers 201184, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2011.
    19. Jean-Pierre I. Rest & Alan M. Sears & Li Miao & Lorna Wang, 2020. "A note on the future of personalized pricing: cause for concern," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(2), pages 113-118, April.
    20. repec:ers:journl:v:xxiv:y:2021:i:3b:p:386-398 is not listed on IDEAS
    21. Heatley, David & Howell, Bronwyn, 2009. "The Brand is the Bundle - Strategies for the Mobile Ecosystem," Working Paper Series 19140, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:iprjir:214065. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://policyreview.info/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.