0:00:01.450,0:00:02.700 The phone you use,[br][dramatic music] 0:00:02.700,0:00:04.150 the computer you own, 0:00:04.150,0:00:05.780 the zip code you live in. 0:00:05.780,0:00:08.170 These can all be factors[br]in the price you see 0:00:08.170,0:00:10.503 when you're searching for[br]items on the internet. 0:00:13.230,0:00:15.993 Welcome to the world[br]of mass customization. 0:00:21.380,0:00:22.340 For example, 0:00:22.340,0:00:24.270 you probably know that logging on 0:00:24.270,0:00:25.620 on different days and times 0:00:25.620,0:00:28.253 can give you different[br]prices for airline flights, 0:00:29.950,0:00:30.860 but you might not know 0:00:30.860,0:00:33.360 that Amazon can change[br]its prices for everything, 0:00:33.360,0:00:37.090 from dustpans to televisions[br]every 15 minutes, 0:00:37.090,0:00:39.360 even more often than airlines. 0:00:39.360,0:00:41.420 Researchers have tried[br]to study this phenomenon, 0:00:41.420,0:00:44.560 but the world of ever-changing[br]prices is a black box, 0:00:44.560,0:00:46.630 that is difficult to test. 0:00:46.630,0:00:48.930 Even so, here are some findings: 0:00:48.930,0:00:51.650 Orbitz was found to be[br]showing higher priced hotels 0:00:51.650,0:00:54.660 to Mac users than PC users. 0:00:54.660,0:00:58.140 Staples was found to sell most[br]everything on its website, 0:00:58.140,0:00:59.950 from staplers to duct tape, 0:00:59.950,0:01:02.260 at different prices in[br]different zip codes. 0:01:02.260,0:01:04.330 The zip codes being charged higher prices 0:01:04.330,0:01:06.113 were more likely to be low income. 0:01:07.110,0:01:09.550 Princeton Review charges different prices 0:01:09.550,0:01:13.020 for its online SAT tutoring[br]in different zip codes. 0:01:13.020,0:01:16.030 We found that Asians were[br]almost twice as likely, 0:01:16.030,0:01:19.670 to be offered a higher[br]price than non-Asians. 0:01:19.670,0:01:21.090 In the European union, 0:01:21.090,0:01:23.810 variable pricing is regulated. 0:01:23.810,0:01:24.850 In the United States, 0:01:24.850,0:01:26.650 it's legal to sell the same product 0:01:26.650,0:01:28.630 to different people for different prices. 0:01:28.630,0:01:30.330 That means, in the U.S., 0:01:30.330,0:01:34.791 mass customization can[br]mean mass discrimination. 0:01:34.791,0:01:37.708 [music continues]