“But I don’t have anything to hide” Part II

In an earlier post, I pointed out that differential pricing — the ability of businesses to charge different people different prices — is one of the killer apps of data analytics. Since the goal of businesses will be to charge everyone the most they’re willing to pay, there are strong reasons why we might not want to be modelled this way, even if “we have nothing to hide”

There’s a second area in which models of everyone might feel like a bad thing — healthcare. As the costs of healthcare rise, there will be strong arguments that individuals need to be participants in maintaining their health. This sounds good — but when big data collection means that a health case provider might charge more to someone who has been smoking (plausible case), overeating (hmm), not exercising enough (hmmm), or any of a number of other lifestyle choices, it begins to be uncomfortable, even if “we have nothing to hide”.

The point of much data analytics by organisations and states is to assess the cost/benefit ratio of interacting with you. Of course, humans (and their organisations) have always made such assessments. What is new is the ability to do so in a fine-grained, pervasive, and never-removable way. What will be lost is the possibility of a fresh start, of redemption, or even of convenient amnesia about aspects of the past.

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