AI lets firms tailor prices to each user, raising fairness concerns as consumers may unknowingly pay more than others
Artificial intelligence could soon allow powerful companies to charge each customer a different price for the same product, based on what they think each individual is willing to pay.
That is the warning from new research co-authored by competition law academic Dr Miroslava Marinova at the University of East London, which argues that the real risk is not simply higher prices, but hidden, personalised pricing that consumers cannot see or understand.
Traditionally, firms set prices in response to market conditions, such as demand, costs, or competition, meaning that all consumers are offered broadly the same price at a given moment.
A different model is now emerging. Algorithmic personalised pricing refers to the use of data-driven systems to adjust prices at the level of the individual consumer. The objective is not simply to respond to market demand, but to predict how likely a particular consumer is to accept a higher price rather than search elsewhere.
...read more at eurekalert.org
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Y'all don't have apps that give personal discounts? I thought that this has been the norm since 25 years or so?
AI-Enabled Price Discrimination as an Exploitative Abuse of Dominance under EU Competition Law - 24 Hours access: EUR €53.00
~lol~lol
That's Abuse! 53 euros to read an article about abuse! ahahah
for 24 hours only.
This isn’t a matter of justice. Everyone has the right to ask whatever price they want for their goods and services.
It’s not like consumers are required to buy at particular prices. So, why should producers be required to sell at particular prices?
Seems like it’s more about resellers, and from what they’re saying, this could be breaking European competition law.
I don’t doubt that but it’s not a just law
This can exploit consumers' lack of transparency and can lead to unfair pricing where some people pay significantly more for the same product. This practice undermines trust in the market and can disproportionately affect those who are less informed or have fewer alternatives.