Online pricing algorithms can game the system and ultimately end up costing the consumer more.
found that price discrimination led to decreased feelings of fairness and resulted in"disastrous consequences both for the vulnerable party and for the performance of the business relationship as a whole.".
They wrote that pricing algorithms lacked"the empathy required to anticipate and understand the behavioral and psychological effects that price changes have on customers," and that,"By emphasizing only supply-and-demand fluctuations in real time, the algorithm runs counter to marketing teams' aims for longer-term relationships and loyalty."MacKay said a few regulations could help avoid some of these consequences and bring competition to a more standard model.
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