Detecting price and search discrimination on the Internet Jakub - - PowerPoint PPT Presentation

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detecting price and search discrimination on the internet
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Detecting price and search discrimination on the Internet Jakub - - PowerPoint PPT Presentation

Dec 28, 2022 164 likes •461 views

Detecting price and search discrimination on the Internet Jakub Mikians*, Lszl Gyarmati, Vijay Erramilli, Nikolaos Laoutaris Telefonica Research, *Universitat Politecnica de Catalunya 1 Telefnica Research Customers buy the same product

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SLIDE 1 Telefónica Research

Detecting price and search discrimination on the Internet

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Jakub Mikians*, László Gyarmati, Vijay Erramilli, Nikolaos Laoutaris Telefonica Research, *Universitat Politecnica de Catalunya

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Customers buy the same product for different prices

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We may not be aware that this could happen on the Internet as well

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Price difference does not necessary equal price discrimination

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Price discrimination

practice of pricing identical goods to different people based on the highest price they are willing to pay (reservation price)

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Why study price discrimination?

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Market sizes

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$71B

$934B*

* according to Goldman Sachs, by 2013

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SLIDE 9 Telefónica Research

Search Discrimination

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Search Discrimination

§e.g. Bobble: filter bubble due to search

personalization @ GTech

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Economic implications

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How do we do it and what did we find?

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Information vector: system

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No PD, no SD

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SLIDE 15 Telefónica Research

Information vector: location

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§6 Locations: NY, LA, DE, SP, SK, BR §Everything same except IP address §NTP synchronized §NO discrimination.. except..

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Information vector: location

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SLIDE 17 Telefónica Research

Kindle e-books

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Difference: 21% to 166%

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Steam

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Mean difference: 20%

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Staples

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Information vector: personal information

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Does your PI/interests, inferred via browsing information, cause PD?

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We created two online personas

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Affluent Budget conscious

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i) Visit sites that classify you as ‘affluent’ via AudienceScience Personas based: Affluent

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Affluent ii) Enable tracking 2 weeks 200 sites, 65 products

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SLIDE 23 Telefónica Research

What do we see?

§P r i c e d i s c r i m i n a t i o n : N O

discrimination

§Search: Some discrimination

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Mean difference ~ 15% Personas: Search Discrimination (cheaptickets)

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SLIDE 25 Telefónica Research

How would you do it?

§Too much infrastructure needed §Use ad-networks? §Idea: Use origin/referer §Coming from a price aggregator site

can out you as price sensitive

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SLIDE 26 Telefónica Research

nextag -> shoplet

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Mean difference ~ 26% Can be due to special contracts

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SLIDE 27 Telefónica Research

Disclaimers/Limitations

§Preliminary study, 200 online vendors,

65 product categories

§Fine scale temporal variations §We take measurements multiple times §Assume information vectors in isolation

will trigger PD

§Underestimating PD

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SLIDE 28 Telefónica Research

Summary

§Price discrimination is important

tool to price

§Developed a methodology to

uncover PD

§Initial results §Tool for price comparison,

available for beta testing

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http://pdexperiment.cba.upc.edu