---
title: "Data-Driven Differential Pricing Benefits Consumers and Companies Alike"
summary: |-
  Better differential pricing due to data innovation is a cause for optimism not dread.
date: "2015-04-24"
issues: ["Data Innovation"]
authors: ["Joshua New"]
content_type: "Op-Eds & Contributed Articles"
canonical_url: "https://itif.org/publications/2015/04/24/data-driven-differential-pricing-benefits-consumers-and-companies-alike/"
---

# Data-Driven Differential Pricing Benefits Consumers and Companies Alike

A common concern expressed by big data detractors is that retailers may use data to charge different customers different prices, a practice known as differential pricing. But as Josh New writes in *Real Clear Technology*, the ability to set prices at the individual level is cause for optimism, not dread. In situations where differential pricing is used to harm consumers, policymakers should address the root causes of the problem—such as limited consumer access to information or a lack of competition—rather than broad regulating the private sector’s ability to use data to guide decision-making.

---
*Source: Information Technology & Innovation Foundation (ITIF)*
*URL: https://itif.org/publications/2015/04/24/data-driven-differential-pricing-benefits-consumers-and-companies-alike/*