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January 15, 2010

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One thing that should be considered with this type of advertising and coupon-ing is the potential for price discrimination by an information rich third party. Essentially this would mean that information from companies like facebook, google, etc could create personalized discount coupons for shopping online, or for delivery to your phone. The amount of the discount could be different for each person based on estimated price sensitivity and preferences, meaning that consumers would be paying different amounts for the same products, likely allowing businesses to capture a greater portion of consumer surplus - i.e. the average price paid for products and services could go up.

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