Amazon Is More Than A Shopping Web site. However demographics are literally a crude way of personalizing prices, the Brandeis economist Benjamin Shiller argued in a recent paper, First-Degree Value Discrimination Using Big Data.” If Netflix were to use solely demographic components, such as folks’s race, family earnings, and zip code, to personalize subscription costs, his mannequin predicted, it might increase its income by zero.3 %. But if Netflix also used folks’s internet-searching historical past—the share of web use on Tuesdays, the number of visits to , and some 5,000 other variables—it could enhance its income by 14.6 %.

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