Murray State University
STUDY 2: Ability to Price Discriminate Given Information Gathered with Technology
Institution
Murray State University
Faculty Advisor/ Mentor
David Eaton
Abstract
This study examines price discrimination, charging different prices to different customers based on their willingness to pay in order to maximize profits. In particular, I have looked at how technological advances have made price discrimination more feasible for individual firms to implement. I have looked at ways firms gather information given today's technology, such as tracking purchase history with discount cards, collecting phone numbers at checkout, or tracking online purchases. The study then looked at how the companies are able to effectively use the information that they have gained in order to charge different prices to different buyers. Examples of this behavior would include sending coupons to customers given the information they have learned about the individuals purchases, or tracking mouse clicks to approximate a consumer's willingness to pay for an item.
STUDY 2: Ability to Price Discriminate Given Information Gathered with Technology
This study examines price discrimination, charging different prices to different customers based on their willingness to pay in order to maximize profits. In particular, I have looked at how technological advances have made price discrimination more feasible for individual firms to implement. I have looked at ways firms gather information given today's technology, such as tracking purchase history with discount cards, collecting phone numbers at checkout, or tracking online purchases. The study then looked at how the companies are able to effectively use the information that they have gained in order to charge different prices to different buyers. Examples of this behavior would include sending coupons to customers given the information they have learned about the individuals purchases, or tracking mouse clicks to approximate a consumer's willingness to pay for an item.