(Last Word) "Big Data"
A) has completely eliminated the monopoly pricing power of online retailers.
B) is used by firms to price discriminate through personalized pricing.
C) is a significant barrier to entry to new Internet retailers.
D) makes it easier for government to regulate monopolistic industries.

Question

Quizplus · Accepted Answer

Big Data allows firms to collect and analyze vast amounts of data on individual consumers, which can be used to personalize pricing and offer different prices to different consumers. This creates a form of price discrimination, which gives firms more power to charge higher prices to some consumers based on their willingness to pay.