tutor2u | Surge pricing comes to the supermarket

Topic updates

Surge pricing comes to the supermarket

Geoff Riley

5th June 2017

This is a really interesting article from the Guardian about the rise of dynamic pricing by supermarkets - drawing on the power of big data and ubiquitous mobile technology to personalise prices offered to consumers and move businesses closer to perfect price discrimination.

Takeaway points:

  • Firms have used dynamic pricing for years
  • Online retailers are increasingly using your personal data
  • How much are you ready to pay? The algorithm knows. Fixed pricing is dying out - but is it fair? Ethical?
  • Should businesses who combine cutting edge technology and insights from behavioural economics be subject to tougher scrutiny / regulation?

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

Recommended

AQA A-Level Economics Grade Booster 2022

Student Revision Workshops

Join our experienced presenters for a day of fast-paced revision & essential exam technique advice on the big cinema screen – supported by online help all the way though to your final exam paper.

Learn more

© 2002-2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.