Two People, Different Prices?
44sThe shocking revelation that two people can pay different prices for the same item due to algorithmic pricing immediately grabs attention and sparks curiosity.
▶ Play ClipAI Summary
This video explains the concept of algorithmic pricing, where software automatically sets prices based on data to maximize profit. It highlights how this practice is moving beyond airlines and hotels into everyday retail, with a recent investigation revealing significant price discrepancies for identical items. The video also touches on the lack of transparency and the potential for consumers to be overcharged without their knowledge.
Chapters
[00:15]
What is Algorithmic Pricing?
Algorithmic pricing is software that automatically sets prices based on data to maximize seller profit. It's now used in ride-sharing, delivery apps, and grocery stores, not just airlines and hotels.
[00:41]
Investigation Reveals Price Differences
A Consumer Reports and Groundwork Collaborative investigation found that some shoppers were charged five times more for the same 20 items at the same stores. For some products, like peanut butter, the difference was up to 23%.
[00:58]
Impact on Consumers
Algorithmic pricing benefits large corporations but harms consumers, who may not even be aware it's happening. The video suggests this is a major downside.
[01:10]
Grocery Stores Adopt the Technology
Kroger is using Electronic Shelf Labels (ESL) in hundreds of stores, which look like paper tags but can be updated in seconds, enabling dynamic pricing in physical stores.
Algorithmic pricing is a growing but often invisible force shaping what we pay, with a recent investigation showing price differences of up to 23% on identical items. It's a system that benefits corporations at the expense of consumer transparency, making it crucial to be aware of how it works.
Mentioned in this Video
Study Flashcards (4)
What is algorithmic pricing?
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What is algorithmic pricing?
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Software that automatically sets prices based on various data sources to maximize a seller's profit.
00:15
Name three industries that use algorithmic pricing.
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Name three industries that use algorithmic pricing.
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Airlines, hotels, ride-sharing apps, food delivery apps, and grocery stores.
00:22
What did the Consumer Reports and Groundwork Collaborative investigation find?
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What did the Consumer Reports and Groundwork Collaborative investigation find?
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They found that some shoppers were charged five times more for the same 20 items, with some products like peanut butter showing a 23% price difference.
00:41
What technology is Kroger using in its stores to enable dynamic pricing?
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What technology is Kroger using in its stores to enable dynamic pricing?
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Electronic Shelf Labels (ESL).
01:10
💡 Key Takeaways
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Price Discrepancies Found
Provides concrete evidence of the impact of algorithmic pricing, showing a fivefold difference in prices for the same items.
00:41
💡
The Core Problem
Clearly states the main disadvantage of algorithmic pricing: it benefits corporations while harming consumers, often without their knowledge.
00:58
📊
Grocery Stores Adopt the Tech
Shows that this isn't just an online issue, as major chains like Kroger are implementing the technology in physical stores.
01:10Full Transcript
[00:01] котором вы, вероятно, еще даже не знаете , и он называется алгоритмическим ценообразованием. В результате два человека могут заплатить совершенно разные цены за один и тот же товар или услугу. Алгоритмическое ценообразование — это когда
[00:15] программное обеспечение автоматически устанавливает цены на основе множества различных источников данных с конечной целью максимизации прибыли для продавца. Авиакомпании и отели делают это уже много лет, но теперь это происходит и в других местах, например, в
[00:29] приложениях для совместных поездок, приложениях для доставки и даже в продуктовых магазинах. Недавно издание Consumer Reports совместно с Groundwork Collaborative провело расследование
[00:41] обнаружили, что с покупателей взималась пятикратная различная сумма за одни и те же 20 товаров, приобретаемых в одних и тех же магазинах. А для некоторых товаров, например, арахисового масла, разница достигала 23% . Недостатки здесь очевидны.
[00:58] Алгоритмическое ценообразование выгодно крупным корпорациям. Между тем, это наносит ущерб рядовым потребителям. И если вы не отслеживаете каждую свою покупку, вы можете даже не знать, что это происходит с вами. И если вы думаете, что
[01:10] это касается только приложений для доставки, то вы ошибаетесь, потому что Kroger использует электронные ценники (ESL) в сотнях своих магазинов. Они очень похожи на обычные бумажные бирки, но их можно обновить за считанные секунды. Итак,
[01:25] if you're seeing a high grocery bill, this might be part of the
