Rethink...pricing

Rethink

Rethink looks at the issues of our time, and considers how we might approach them differently. Scrutinising the latest thinking and research, we look at what this might mean for policy and society.

In this episode: the cost of living has been high, but all too often, we also pay a premium. It's because of dynamic pricing, drip pricing and now personalised pricing.

Dynamic pricing is why, after queuing for hours, Oasis fans were offered tickets that were considerably more expensive than the ones advertised. It's also why do you can be offered different prices each time you try and book an airline ticket, or a hotel online.

Big data means that companies can figure out exactly what you are willing to pay online and can shift the price you face to match that.

AI data-gathering software is causing cartel-like behaviour amongst competitors, who can draw similar conclusions about their market, and set similar prices.

The depth of information available to companies means that they know the price a market will bear, rather than how much customers can afford and regardless of interest rates set by central banks.

Regulators are playing catch-up, but what other strategies could be used to combat anti-competitive pricing led by algorithms? And what needs to change to ensure buyers can work out if they're getting a fair deal?

Presenter: Ben Ansell Producer: Ravi Naik Editor: Clare Fordham

Contributors: David Dayen, writer and journalist, and the executive editor of The American Prospect magazine. Tom Smith, partner at Geradin, and former Legal Director at the UK Competition and Markets Authority. Cathrine Jansson-Boyd, Professor of consumer psychology at Anglia Ruskin University. Martyn James, consumer rights campaigner and journalist.