AI-Driven Dynamic Pricing: How Your Browsing History Affects Online Costs

AI-driven Dynamic pricing is reshaping online costs by using web browsing history to influence prices, raising concerns about transparency (behavior) and fairness in consumer transactions.

As of October 20, 2023, prices for flights can fluctuate based on web browsing history, with an example showing a flight to Melbourne changing from USD 300 to USD 320 within hours.
Companies like airlines and hotels are increasingly adopting variable pricing strategies powered by Artificial intelligence, allowing them to personalize costs based on individual consumer data.
The rise of dynamic pricing raises ethical concerns regarding personal data usage, as consumers may face inconsistent pricing without clear explanations on how their web browser activities are influencing costs.

Why It Matters

Understanding the implications of dynamic pricing is crucial as it highlights the intersection of technology and consumer rights, raising questions about the fairness and ethics of pricing strategies in digital marketplaces.