The Case of the Missing Sale: The FTC’s Personalized-Pricing Blind Spot
Suppose a retailer charges $10 for a service. One customer values it at $11 and buys it. Another values it at $8 and walks away. The retailer sends the second customer a $3 coupon. She pays $7, gets something worth $8 to her, and the retailer makes a sale it otherwise would have missed. The customers paid different prices, but without the coupon, the likely outcome was one $10 sale—not two $7 sales.
That missing sale matters to the Federal Trade Commission’s (FTC) proposed enforcement policy statement on personalized pricing. The FTC acknowledges that Congress has not authorized a…
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