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by jcfrei 2385 days ago
> [...] the combination of which allows market actors to determine how much of my consumer surplus they can extract in every sense

That would only be possible if the online stores could perfectly discriminate users based on price. Which happens to some extent (booking flights is a popular example) but is difficult to pull off and also illegal in most countries. You are not allowed to make personal discounts for each customer for example. Better and stricter legislation to prevent these kinds of personalized discounts would be pretty straightforward to implement if it were a major concern.

2 comments

One need not perfectly discriminate. Any discrimination eats consumer surplus.

It is a major concern. It is used in booking sites, and it will be used in other sites. We can not rely on regulation.

My point stands: User targeting is a threat and we, the users, are entirely justified in not liking it.

> You are not allowed to make personal discounts for each customer for example

It is surprising. Couldn't find anything about it in a quick search. It would also make flea markets illegal, wouldn't it?

I think that some forms of price discrimination are forbidden (but still practiced). Women pay no entrace in clubs, young students pay less etc.

Here's a recent example from the EU: https://eur-lex.europa.eu/eli/reg/2018/302/oj It addresses geo-blocking customers of online shops (and redirecting them to national versions of the shop with different prices).
Price discrimination itself is not illegal (for example in the EU), it is only so if it is based on certain parameters. And this you'd need to prove in court, which makes it unlikely that regulation will solve this issue any time soon.

Beyond the legality of the issue, the point remains: Here, companies and consumers are strategically at odds.