The future is personalised pricing

But this isn't necessarily a bad thing.

On a recent trip to Kenya I found that the amount you get charged for a bus ride depends mostly on how badly you look like you need one. The longer it you've been waiting, the more bags you have, the more irritated the look on your face, the more you'll end up paying.

This is not a great system for commuters, but is one that seems to be  coming in to force online. The Office of Fair Trading is currently looking in to personalised pricing - where retailers use information they've gathered about customers to decide how much to charge them. The information is collected either from previous purchases on the site or bought through a third party - retailers then potentially charging some people higher prices.

Particular worries have been raised about flights and hotel rates. There have been allegations that companies look at your computer brand or area (indications of wealth) to help them decide on hotel price, and that flight prices are changed depending what on other sites you have been looking at. This is very annoying, expecially for customers whose activity indicates that they are a) rich or b) badly need the service.

But as the FT points out, a system of fixed pricing isn't inevitable. It makes sense for retailers to try and squeeze all they can out of each customer, and fixed pricing only came in to fashion for practical reasons - high volumes making it impossible to keep track of individual buyers. But technology is changing this, allowing prices to splinter. Here's FT Alphaville:

We can find ourselves in a situation where we have inflation and deflation simultaneously across society. And not on a product level, but on a demographic level.

In fact it’s not too crazy to imagine an environment where prices get higher quickly for the 1 per cent, but lower for the 99 per cent. The 1 per cent are, after all, already prepared to pay over the pure cost price in many areas. Of course, the situation could be inverted as well.

The results of the change could be huge, but perhaps the Office of Fair Trading should stay out of it. Kenyan bus drivers use personalised pricing because it maximises profits and because they can. It makes a certain amount of sense for other businesses to start doing the same.
 
For you: best price. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

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Every day, Theresa May's mask slips a little further

First the Human Rights Act, now Dfid. What's next, asks Jon Ashworth.

The news that the new International Development Secretary is about to slash development spending and channel Britain's aid budget into defence spending is yet another major slip of the new government's centrist mask.

Theresa May has tried to pitch her policy agenda as prioritising social justice and a “Britain that works for everyone” but the reality is that this announcement is the true right-wing colours of her government shining through.

The appointment of the most right-wing Cabinet for decades was a major warning sign, with figures such as David Davis, who said he was “very worried” about sexual discrimination legislation, and Liam Fox, who said equal marriage was “social engineering”, now at the highest level in government.

Those of us passionate about development were horrified when Priti Patel, who has previously called for the Department for International Development to be scrapped, was appointed as the department's new Secretary of State, but few of us would have imagined such a dramatic break with Britain's strong development legacy so soon.

Not only is what is reported very dubious in terms of the strict regulations placed on development spending- and Priti Patel has already come dangerously close to crossing that line by saying we could use the aid budget to leverage trade deals - it also betrays some of the very poorest in the world at a time when many regions are facing acute humanitarian crises.

It was Gordon Brown who put international development at the heart of 13 years of Labour government, massively increasing aid spending and focusing minds in Britain and abroad on the plight of those suffering from poverty, famine and the ravages of war. David Cameron followed Gordon’s lead, enshrining the 0.7 per cent aid budget in law, making Britain the first G7 country to do so. In light of these new revelations Theresa May must now restate her commitment to the target.

Sadly, it now seems that Theresa May and Priti Patel want to turn the clock back on all that progress, diminishing Britain's role in international development and subverting the original mission of the department by turning it into a subsidiary of the Ministry of Defence, focused on self-interest and security. Not only will this create the opposite of the "outward-looking and globally-minded country" Theresa May said just weeks ago she wanted Britain to be, it’s also a betrayal of some of the poorest people across the planet.

Other examples of the right-wing traits of this Government surfaced earlier this week too. On Friday it emerged that Gerard Lopez, a tax-haven based businessman with links to Russian State banks that have been sanctioned in the wake of the Ukrainian conflict, donated £400,000 to the Tory party just months ago. Theresa May needs to tell us what meetings and interactions she has had with Lopez.

Earlier in the week Liz Truss, the new Justice Secretary, brazenly insisted that the Government would proceed with scrapping the Human Rights Act, despite fierce opposition from politicians of all parties and the public.

With so many right-wing announcements trickling though when the government has hardly had time to change the name plaques above the doors you've got to wonder and worry about what else is set to come.

Jon Ashworth is Labour MP for Leicester South.