Price Discrimination - How Technology makes it easier

This is a great video on how some businesses are using cookies on our computers to price discriminate. The technology allows them to reduce our consumer surplus and maximise their producer surplus.

For example the cookies allow a business to know whether the user is using a PC or an Apple Mac. If they are using the latter then they assume the user has more income and so increase the price slightly. There is no official proof yet, but the OFT are investigating.

No more shopping with the Ipad for me!