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.

Photo: Getty
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Michel Barnier is Britain's best friend, but the Brexiteers are too shallow to notice

The right's obsession with humilating a man who should be a great British asset is part of why negotiations are in a mess. 

Sam Coates of the Times has the inside track on what Theresa May is planning to say in her big speech in Florence tomorrow: a direct appeal to the leaders of the European Union’s member states over the head of Michel Barnier, the European Commission’s chief negotiator.

I explained some of the problems with this approach in my morning briefing earlier today, but just to reiterate: the major difficulty is that Barnier’s mandate as a negotiator hasn’t emerged fully formed from the mind of some scheming bureaucrat in the European Commissio, but after discussion and agreement by the heads of member states. There are problems with the EU approach to sequencing talks, but the chances of changing it by appealing to the people who set it in the first place seems unlikely, to put it mildly.  

Barnier seems to occupy a strange position in the demonology of right-wing Brexiteers, I suspect largely due to ignorance about how the EU works, and in some cases Francophobia. The reality is that Barnier is the single politician outside of the United Kingdom with the most to lose from a bad Brexit deal.

If the Brexit talks end badly, then that will be the first line of Barnier’s obituary. Back in his native France, the centre-right is in opposition and none of the candidates vying to lead the Republicans are are going to give him a big domestic job to save his reputation.

His dream of parlaying a successful turn as the EU27’s chief negotiator into running the Commission relies not only on the talks succeeding, but him cultivating a good relationship with the heads of government across the EU27. In other words: for Barnier to get what he wants, he needs both to secure a good deal and to keep to the objectives set for him by the heads of member states. A good deal for all sides is a great deal for Barnier. 

As a result, the Brexit elite ought to see Barnier as what he really is: their best friend on the other side of the table. Instead, they are indulging in fantasies about tricking Barnier, undermining Barnier, and overcoming Barnier. In short, once again, they are bungling Brexit because they don’t want to think about it or approach it seriously. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.