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

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  • 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
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    References listed on IDEAS

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    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.
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    Cited by:

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    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.

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