I Got It Cheaper Than You

WHAT DO American Airlines, Glaxo Wellcome, Staples, Intuit, Stanford University, CDnow, AT&T, Simon & Schuster and Safeway have in vernacular? They all engage in price favoritism. They charge well-nigh customers more than other customers for the same thing or about the same thing. Price discrimination is an old farinaceous, probably go out back 3,000 years or so. You cut a excess deal for some customers but not for others, depending on how probably they ar to take their business elsewhere. Now the bet seems designate to mature a lot bigger, both in absolute frequency and in composite plantity. The reason? Technology. If you are the var. of person who is ticked move out near paying $1,200 for an airline business ticket while the pest sitting next to you paying $500, brace yourself. Computers are qualification it easier for vendors to play this game when you are shopping for middling about anything -- a CD, a humanity of software, a dress, a book, a doc tors visit, a movie. A bare-assed wave of price discrimination is coming, says Hal R. Varian, dean of U.C. Berkeleys School of training Management & Systems. Computers are qualifying to discriminate not just between business travelers and unoccupied travelers but between smith and Jones.

Theres going to be a massive expansion in price discrimination as the cost of MIPS [computing power] goes to zero, says Jay S. Walker, father and vice chairman of Priceline.com. In Walkers world, you dont complain about the evil of it all. You just try to turn away the discrimination game to your advantage. Priceline.com allows travelers to cut special deals for airline tickets schedule at th e destination minute -- $400, for example, ! for a trip from Washington, D.C. to San Francisco, against the $1,200 just fare. Using complex software that shops bids from travelers to 18 airlines, Priceline.com brokers around 1,000 tickets a day.If you want to get a full essay, order it on our website: OrderEssay.net

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