"This price was set by an algorithm using your personal data. The Post's use of algorithmic pricing is not surprising, given the newspaper's recent fixation on artificial intelligence-consider its AI-powered search engine and robot-led podcast. When we asked the Post for comment on its algorithmic pricing mechanisms, a spokesperson directed us to a blog post from the publication's engineering team."
"Though Cian does not have firsthand knowledge of how the Post's algorithmic pricing model works, he says that many such models rely on user demographics and location to determine how much they might be willing to pay for a product. Companies have long been using geographic information to dictate pricing."
"In 2015, ProPublica reporters discovered that the Princeton Review was charging more for the same SAT tutoring package in areas with higher Asian populations. They call it the 'tiger mom tax' because they thought, 'OK, that population most probably will really be focused on things like SAT product packages.'"
The Washington Post has implemented algorithmic pricing that adjusts subscription rates based on individual user data, with notifications disclosing this practice. The newspaper's engineering team developed a smart metering model using AI to determine free article access for both anonymous and registered users before triggering paywalls. However, specific details about how subscriber information influences pricing remain unclear. According to business experts, algorithmic pricing models typically leverage user demographics and location data to estimate willingness to pay. Historical precedent exists for demographic-based pricing discrimination, such as the Princeton Review charging higher SAT tutoring rates in areas with larger Asian populations.
#algorithmic-pricing #personalized-pricing #subscription-rates #demographic-targeting #price-discrimination
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