I recently read an article noting that a major airline is planning to eliminate set pricing and instead use AI to determine how much you would be willing to pay. Surveillance pricing was mentioned in the article and I wanted to know more about it and thought you might want to know more about it as well. Surveillance pricing is a rather new "concept," so I found little in the way of books dealing directly with the subject, but I did find a few books linked below that touch on surveillance and algorithmic pricing.
What is surveillance pricing?
I also asked ChatGPT to provide me with a description of Surveillance Pricing. Here's ChatGPT's response...
Surveillance Pricing is a pricing strategy or mechanism that uses real-time monitoring of consumer behavior, data and market conditions to dynamically adjust prices. It often involves the use of data analytics, artificial intelligence and machine learning algorithms to personalize prices based on a variety of factors.
- Individual user behavior
- Browsing or purchase history
- Location
- Device type
- Time of day
- Demand fluctuations
Key features of surveillance pricing
Data-Driven: Relies on extensive data collection—clicks, time spent on page, demographics, etc.
Dynamic: Prices can change frequently, even minute-to-minute, based on live signals.
Personalized: Different users may see different prices for the same product or service.
Algorithmic: Driven by machine learning models that continuously learn from new data.
Examples of surveillance pricing
E-commerce: A customer in a wealthier zip code might see higher prices than one in a lower-income area.
Ride-sharing (e.g., Uber): Surge pricing adjusts based on current demand, location, and time.
Airlines & Hotels: Prices change based on demand, booking trends, and user interest.
Ethical concerns
Price discrimination: Some users might pay more simply due to their data profile.
Lack of transparency: Consumers may not know why prices change.
Privacy: Heavy surveillance of user activity raises concerns about consent and data use.
The "bottom line" (according to ChatGPT)
Surveillance pricing is the next evolution of dynamic and personalized pricing, powered by constant monitoring and algorithmic decision-making. While it can increase efficiency and profits, it also raises serious questions about fairness, privacy, and accountability.
Additional resources
Related books
While the term surveillance pricing might be new, the concept of smart pricing and digital pricing has been gaining traction for a few years. Check out one of the books available in the Arapahoe Libraries collection or reserve a copy through Prospector.
The Age of Surveillance Capitalism
Digital Pricing: A Guide to Strategic Pricing for the Digital Economy, opens a new window
Digital Pricing Strategy: Capturing Value from Digital Innovations, opens a new window
Scholarly articles
I also searched our library databases for more articles and included the abstracts (the article overview) if you would like to take a deeper dive into the topic. To access the full articles on Ebsco, you will need to sign in with your library card.
- David Dayen's 2024 article “One Person One Price., opens a new window”
(Abstract) The article explores the evolution of personalized pricing, highlighting its roots in historical pricing strategies and its current manifestation in digital surveillance and customer isolation. It mentions that by leveraging extensive data collection and advanced algorithms, businesses aim to tailor prices to individual customers, maximizing profits while raising concerns about fairness and privacy. - Nikita Shepard's 2024 article “Surveillance Capitalism in America Ed. by Josh Lauer and Kenneth Lipartito (Review)., opens a new window”
(Abstract) The article discusses the concept of "surveillance capitalism" and its historical roots in the United States. It challenges the idea that surveillance capitalism is a recent phenomenon and argues that its key features have existed throughout the history of capitalism in America. The article presents a collection of essays that explore different aspects of surveillance capitalism, including its role in slavery, consumer data monetization, employee surveillance, and the interplay between public and private power. While the essays raise questions and provide insights into surveillance capitalism, they also highlight the need for a longer historical lens to fully understand its development and impact. [Extracted from the article] - Kenneth Lipartito's 2025 article “Surveillance Capitalism: Origins, History, Consequences., opens a new window”
(Abstract) This article investigates the early history and recent development of what is now termed surveillance capitalism. It argues that an underappreciated aspect of the surveillance of people and intensive data collection is a regularization of behavior that attempts to erase uncertainty. This process has been ongoing for more than a century, but its expansion through increasingly sophisticated digital technology and the widespread adoption of data gathering as a business strategy has the potential to stifle and inhibit the innovative entrepreneurship that is crucial to the capitalist system. How this will play out remains unclear, but history argues that we should look for ways to mitigate the potentially negative consequences of complex technological systems such as these.
Legal considerations, protections and potential regulations
Protections Against Deceptive Pricing Practices, opens a new window
Prohibit Surveillance Data to Set Prices and Wages, opens a new window
Effort to ban use of consumer surveillance data meets its legislative end, opens a new window
State Legislatures Advance Surveillance Pricing Regulations, opens a new window
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