Next Wave: The perfect price discrimination

Next Wave: The perfect price discrimination

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Published August 30, 2026

Image Source: Corporate Finance Institute

Picture the absolute wildest dream of a profit-maximising corporation. It is to charge every single customer exactly the maximum amount of money they have in their pocket at the moment they want to buy a product. Economists call this first-degree or perfect price discrimination. For most of human history, this was structurally impossible because a shopkeeper cannot easily look into your soul, guess your net worth, and magically change the price tag on a litre of milk before you reach the till. But a technology platform intermediating millions of transactions through a smartphone does not need to look into anyone’s soul. It just needs to look at your data.

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