They all engage in price favoritism. They charge nearly customers more than other customers for the same thing or most the same thing.
Price discrimination is an old game, probably go out back 3,000 years or so. You cut a excess deal for some customers but not for others, depending on how probably they are to take their business elsewhere. Now the game seems designate to get a lot bigger, both in absolute frequency and in complexity. The reason? Technology.
If you are the kind of person who is ticked move out near paying $1,200 for an airline ticket while the pest sitting next to you paid $500, brace yourself. Computers are qualification it easier for vendors to play this game when you are shopping for just about anything -- a CD, a piece of software, a dress, a book, a doctors visit, a movie. A new wave of price discrimination is coming, says Hal R. Varian, dean of U.C.
Berkeleys School of Information Management & Systems. Computers are qualifying to discriminate not just between business travelers and unoccupied travelers but between Smith and Jones.
Theres going to be a massive expansion in price discrimination as the cost of MIPS [computing power] goes to zero, says Jay S. Walker, founder and vice chairman of Priceline.com. In Walkers world, you dont complain about the unfairness of it all. You just try to turn away the discrimination game to your advantage. Priceline.com allows travelers to cut special deals for airline tickets schedule at the last minute -- $400, for example, for a trip from Washington, D.C. to San Francisco, against the $1,200 just fare. Using complex software that shops bids from travelers to 18 airlines, Priceline.com brokers around 1,000 tickets a day.If you want to get a full essay, order it on our website: Orderessay
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