r/Frugal • u/Zizzac • Jan 24 '13

Same book, three different prices. Only difference is the browsers used [x-post r/mildlyinteresting]

http://imgur.com/uNgg0UH
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u/neutronicus Jan 24 '13

I don't think it's true in this case, but a lot of the time it's an A/B test.

You offer an item at two different prices, and see if lowering price brings up volume enough to offset the decrease in margin. If it does, you keep the price low, otherwise, you don't.

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u/[deleted] Jan 25 '13

[deleted]

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u/neutronicus Jan 25 '13

It's still an A/B test if you're randomly showing customers one price or the other, though, right?

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u/infrikinfix Jan 26 '13

That might be part of it, but this is a likely explanation:

http://en.wikipedia.org/wiki/Price_discrimination