1 00:00:01,450 --> 00:00:02,700 The phone you use, [dramatic music] 2 00:00:02,700 --> 00:00:04,150 the computer you own, 3 00:00:04,150 --> 00:00:05,780 the zip code you live in. 4 00:00:05,780 --> 00:00:08,170 These can all be factors in the price you see 5 00:00:08,170 --> 00:00:10,503 when you're searching for items on the internet. 6 00:00:13,230 --> 00:00:15,993 Welcome to the world of mass customization. 7 00:00:21,380 --> 00:00:22,340 For example, 8 00:00:22,340 --> 00:00:24,270 you probably know that logging on 9 00:00:24,270 --> 00:00:25,620 on different days and times 10 00:00:25,620 --> 00:00:28,253 can give you different prices for airline flights, 11 00:00:29,950 --> 00:00:30,860 but you might not know 12 00:00:30,860 --> 00:00:33,360 that Amazon can change its prices for everything, 13 00:00:33,360 --> 00:00:37,090 from dustpans to televisions every 15 minutes, 14 00:00:37,090 --> 00:00:39,360 even more often than airlines. 15 00:00:39,360 --> 00:00:41,420 Researchers have tried to study this phenomenon, 16 00:00:41,420 --> 00:00:44,560 but the world of ever-changing prices is a black box, 17 00:00:44,560 --> 00:00:46,630 that is difficult to test. 18 00:00:46,630 --> 00:00:48,930 Even so, here are some findings: 19 00:00:48,930 --> 00:00:51,650 Orbitz was found to be showing higher priced hotels 20 00:00:51,650 --> 00:00:54,660 to Mac users than PC users. 21 00:00:54,660 --> 00:00:58,140 Staples was found to sell most everything on its website, 22 00:00:58,140 --> 00:00:59,950 from staplers to duct tape, 23 00:00:59,950 --> 00:01:02,260 at different prices in different zip codes. 24 00:01:02,260 --> 00:01:04,330 The zip codes being charged higher prices 25 00:01:04,330 --> 00:01:06,113 were more likely to be low income. 26 00:01:07,110 --> 00:01:09,550 Princeton Review charges different prices 27 00:01:09,550 --> 00:01:13,020 for its online SAT tutoring in different zip codes. 28 00:01:13,020 --> 00:01:16,030 We found that Asians were almost twice as likely, 29 00:01:16,030 --> 00:01:19,670 to be offered a higher price than non-Asians. 30 00:01:19,670 --> 00:01:21,090 In the European union, 31 00:01:21,090 --> 00:01:23,810 variable pricing is regulated. 32 00:01:23,810 --> 00:01:24,850 In the United States, 33 00:01:24,850 --> 00:01:26,650 it's legal to sell the same product 34 00:01:26,650 --> 00:01:28,630 to different people for different prices. 35 00:01:28,630 --> 00:01:30,330 That means, in the U.S., 36 00:01:30,330 --> 00:01:34,791 mass customization can mean mass discrimination. 37 00:01:34,791 --> 00:01:37,708 [music continues]