Assignment: Managerial Economics
When internet commerce first started, some customers noticed that they were offered different discounts depending on which computer they used to access the e-commerce sites. After some investigation, business reporters learned that these early e-commerce sellers were identifying customers by the cookies deposited on their computers by the websites. We might expect firms to use order history and other records to discrimination between buyers when people log on to a website with a customer account, but the cookies were used without explicit permission from buyers who visited the websites as visitors (i.e., without logging in). In response to the resulting complaints from customers, most online sellers now acknowledge their use of cookies and other tracking tools by showing us pop-up messages or posting privacy policies.
Do you think it is fair for online sellers to use tracking tools to determine which visitors to their websites are offered discounts on particular products? Should this practice be limited to customers who identify themselves by logging on to a customer account? In contrast, do you favor these practices because you are provided offers that you might not see otherwise?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.