Should We Fear Personalized Pricing?

The practice of personalized pricing involves using information about a consumer to more accurately estimate an individual’s willingness-to-pay for a product to calibrate pricing to that individual. If the practice grows, what does this imply for consumer welfare — particularly for digital markets where there is an abundance of user data? While some consumers may end up enjoying lower prices and having greater access to markets, other consumers will likely end up paying higher prices relativ