Asymmetric haggling

I’ve pointed out before that the real threat to privacy comes not from governments, but from multinationals; and the key model of you that they want to build is how much you’re willing to pay for products and services. They can then use this information directly (airlines, Amazon) or sell it to others (Google).

We’re used to a world in which products and services cost the same for every buyer, but this world is rapidly disappearing. There’s a good article about the state of play in the May issue of the Atlantic:

https://www.theatlantic.com/magazine/archive/2017/05/how-online-shopping-makes-suckers-of-us-all/521448/

The price are quoted in an online setting already depends on the time of day, what platform you’re using, and your previous browsing history.

Of course, fixed prices are a relatively new invention, and haggling is still how prices are determined in much of the world. The difference in the online world is  that the seller has much more data, and modelling capability, to work out what you’re willing to pay than you have about how cheaply the seller is willing to sell. So not only is pricing an adversarial process, it’s become a highly asymmetric one.

This is going to have all sorts of unforeseen consequences: analytics for buyers; buying surrogates; a return to bricks and mortar shopping for some people; less overall buying, … We’ll find out.

In the meantime, it’s always a good idea to shop online using multiple browsers on multiple platforms, deleting cookies and other trackers as much as you can.

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