IDEAS home Printed from https://ideas.repec.org/a/cup/buetqu/v30y2020i1p97-117_5.html
   My bibliography  Save this article

Big Data and Personalized Pricing

Author

Listed:
  • Steinberg, Etye

Abstract

Technological advances introduce the possibility that, in the future, firms will be able to use big-data analysis to discover and offer consumers their individual reservation price (i.e., the highest price each consumer would be willing to pay, given their preferences and available income). This can generate some interesting benefits, such as a better state of affairs in terms of equality of both welfare and resources, as well as increased social welfare. However, these benefits are countered by considerations of relational equality. This article takes up the market-failures approach as its basis to demonstrate what is wrong with using big data to personalize prices. The article offers an improvement to the market-failures approach and argues that what is wrong with using big data to personalize prices is that it unfairly undermines consumers’ ability to benefit from the market, which is the very point of having a market.

Suggested Citation

  • Steinberg, Etye, 2020. "Big Data and Personalized Pricing," Business Ethics Quarterly, Cambridge University Press, vol. 30(1), pages 97-117, January.
    • Handle: RePEc:cup:buetqu:v:30:y:2020:i:1:p:97-117_5
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1052150X19000198/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jerod Coker & Jean-Manuel Izaret, 2021. "Progressive Pricing: The Ethical Case for Price Personalization," Journal of Business Ethics, Springer, vol. 173(2), pages 387-398, October.
    2. Etye Steinberg, 2022. "Run for Your Life: The Ethics of Behavioral Tracking in Insurance," Journal of Business Ethics, Springer, vol. 179(3), pages 665-682, September.
    3. Kirsten Martin & Ari Waldman, 2023. "Are Algorithmic Decisions Legitimate? The Effect of Process and Outcomes on Perceptions of Legitimacy of AI Decisions," Journal of Business Ethics, Springer, vol. 183(3), pages 653-670, March.
    4. Shuilin Liu & Xudong Lin & Xiaoli Huang & Hanyang Luo & Sumin Yu, 2023. "Research on Service-Driven Benign Market with Platform Subsidy Strategy," Mathematics, MDPI, vol. 11(2), pages 1-21, January.
    5. Pade, Robin & Feurer, Sven, 2022. "The mitigating role of nostalgia for consumer price unfairness perceptions in response to disadvantageous personalized pricing," Journal of Business Research, Elsevier, vol. 145(C), pages 277-287.
    6. Bruno F. Abrantes & Klaus Grue Ostergaard, 2022. "Digital footprint wrangling: are analytics used for better or worse? A concurrent mixed methods research on the commercial (ab)use of dataveillance," Journal of Marketing Analytics, Palgrave Macmillan, vol. 10(3), pages 187-206, September.
    7. Lee, Boram & Fraser, Ian & Fillis, Ian, 2022. "To sell or not to sell? Pricing strategies of newly-graduated artists," Journal of Business Research, Elsevier, vol. 145(C), pages 595-604.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:buetqu:v:30:y:2020:i:1:p:97-117_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/beq .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.