Measuring Price Discrimination and Steering on E-commerce Web Sites

Conference Proceeding
Publication date: 
11/2014
Authors: 
Ancsa Aniko Hannak
David Lazer
Alan Mislove
Christo Wilson
Measuring Price Discrimination and Steering on E-commerce Web Sites

Today, many e-commerce websites personalize their content,

including Net

ix (movie recommendations), Amazon (product

suggestions), and Yelp (business reviews). In many

cases, personalization provides advantages for users: for example,

when a user searches for an ambiguous query such as

\router," Amazon may be able to suggest the woodworking

tool instead of the networking device. However, personalization

on e-commerce sites may also be used to the user's disadvantage

by manipulating the products shown (price steering)

or by customizing the prices of products (price discrimination).

Unfortunately, today, we lack the tools and techniques

necessary to be able to detect such behavior.

In this paper, we make three contributions towards addressing

this problem. First, we develop a methodology for

accurately measuring when price steering and discrimination

occur and implement it for a variety of e-commerce web

sites. While it may seem conceptually simple to detect differences

between users' results, accurately attributing these

dierences to price discrimination and steering requires correctly

addressing a number of sources of noise. Second, we

use the accounts and cookies of over 300 real-world users

to detect price steering and discrimination on 16 popular

e-commerce sites. We nd evidence for some form of personalization

on nine of these e-commerce sites. Third, we

investigate the eect of user behaviors on personalization.

We create fake accounts to simulate dierent user features

including web browser/OS choice, owning an account, and

history of purchased or viewed products. Overall, we nd

numerous instances of price steering and discrimination on

a variety of top e-commerce sites.

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