Sandman Pricing • Hacker News Board

Re: Sandman Pricing

#11

Post by abruzzi » Thu, Oct 18, 2012, 3:00 PM UTC

rabidsnail wrote: post #10

Why does everyone claim that price discrimination is some kind of injustice when it's done by a computer?

It has little to do with the price being set by a computer or a person. He sees the price for everyone else is one third cheaper. He doesn't say it, but without making the connection to the price fixing anti-trust action, a reasonable conclusion would be that since the book is one in a series, and Amazon knows he bought the previous book, it has jacked the price for him since he's already "hooked." That to most people would be a questionable pricing strategy.

The anti trust action makes more sense, but he probably didn't make that connection.

Re: Sandman Pricing

#12

Post by tomp » Thu, Oct 18, 2012, 3:01 PM UTC

rabidsnail wrote: post #10

Why does everyone claim that price discrimination is some kind of injustice when it's done by a computer?

Because it's been programmed by a person.

Re: Sandman Pricing

#13

Post by praptak » Thu, Oct 18, 2012, 3:04 PM UTC

abhimir wrote: post #4

For me it is slightly different: When I login "Indian guy with Indian credit card, Indian registered Kindle, Indian shipping address, etc..", I get $9.21. With an anonymous browser window, in India, I get: $9.48, no taxes and free international wireless delivery. I guess this is just third-world / first-world price discrimination.

It's probably also the local taxes. $9.74 here, when logged from IP in Poland, using Polish credit card.

Re: Sandman Pricing

#14

Post by mherdeg » Thu, Oct 18, 2012, 3:06 PM UTC

Hmm. Meanwhile, on amazon.co.uk I am offered £6.99 including VAT and told "This price was set by the publisher".

This is roughly the same as the $9.48 Amazon-set price that Tim sees, plus 20% VAT.

Re: Sandman Pricing

#15

Post by rabidsnail » Thu, Oct 18, 2012, 4:01 PM UTC

tomp wrote: post #12

rabidsnail wrote: post #10

Why does everyone claim that price discrimination is some kind of injustice when it's done by a computer?

Because it's been programmed by a person.

If you go to a flea market, and the lady at the stall gives the person after you a 20% lower price because you looked rich (inelastic) and they looked poor (elastic), would you be angry about that?

Amazon is doing the same thing but with numbers.

Re: Sandman Pricing

#16

Post by rabidsnail » Thu, Oct 18, 2012, 4:06 PM UTC

abruzzi wrote: post #11

rabidsnail wrote: post #10

Why does everyone claim that price discrimination is some kind of injustice when it's done by a computer?

It has little to do with the price being set by a computer or a person. He sees the price for everyone else is one third cheaper. He doesn't say it, but without making the connection to the price fixing anti-trust action, a reasonable conclusion would be that since the book is one in a series, and Amazon knows he bought the previous book, it has jacked the price for him since he's already "hooked." That to most peopl…

Price fixing requires multiple sellers to collude to set prices. Who is the seller besides Amazon in this case?

Re: Sandman Pricing

#17

Post by patja » Thu, Oct 18, 2012, 4:35 PM UTC

rabidsnail wrote: post #10

Why does everyone claim that price discrimination is some kind of injustice when it's done by a computer?

yes...let's all go protest at the cineplex because gosh-darn-it my friend who went to the matinee was charged less than me! unfair!

don't like the price? don't buy it.

Re: Sandman Pricing

#18

Post by ljd » Thu, Oct 18, 2012, 4:51 PM UTC

Our entire business is about giving ecommerce stores the ability to price discriminate algorithmically. Our servers aren't being malicious they are only charging you the most you are willing to pay.

If you don't like a product then don't buy it, the price will most likely come down. It might be hard for people to understand how cold the mathematics and economics are but it really does go both ways.