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Surge pricing comes to the supermarket

Geoff Riley

5th June 2017

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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?
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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty 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 and Revision conferences in the UK and overseas.

@tutor2uGeoff

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