Economic Effects of the Widespread Use of Personalised Pricing
DOI:
https://doi.org/10.54097/czdhq493Keywords:
Personalised Pricing, Price Discrimination, Consumer WelfareAbstract
This study explores the economic impact of personalised pricing in digital markets, based on microeconomic models and consumer welfare analysis. It argues that, although personalised pricing achieves efficient resource allocation through matching between prices and consumers’ willingness to pay in the short term, it may distort price signals and increase transaction costs in the long term. While improving social welfare, personalised pricing can lead to the transfer of consumer welfare to suppliers, creating concerns about distributive fairness. In addition, the data advantages used for personalised pricing may strengthen platforms’ monopoly power, weakening market competition. Therefore, this study argues that regulatory measures are necessary to balance efficiency, fairness and the sustainability of market development.
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