‘Surge-your-worth’ economics

By M Muneer

Once upon a not-so-distant time, business was governed by a certain egalitarian clarity. A price tag spoke the same truth to all who beheld it. Whether you were a maidservant or an investment banker, the fare for your journey, the cost of your tea, or the value of your bread bore no reflection of your identity. Pricing stood as an impartial arbiter between value and exchange.

That familiar world is vanishing.

Algorithms rewriting the price tag

Consider this real-life incident: two travellers, seated in economy class on the same flight, departing as scheduled, both with the same benefits on their tickets, booked via the same platform, yet one paid almost twice what the other did. What changed? The divergence lies solely in the traveller’s digital footprint—her browsing patterns, hour of purchase, postcode, the number of times she returned to check prices, and whether she booked during a moment of urgency or calm. The algorithm saw her, understood her, assessed her likely ceiling, and charged accordingly.

This is no evolution of yield management but a quiet revolution in digital economics, where traditional market dynamics are eclipsed by a more intimate, if not insidious, metric: you. It isn’t about preferences but psychology. And not simply your history, but your hesitation.

When personalisation turns into exploitation

Witness the rise of hyper-personalised pricing: A system in which artificial intelligence (AI) doesn’t just respond to consumer demand but actively anticipates and shapes it. It watches, it learns, it infers, and then it monetises, not based on cost or value but based on your willingness to yield. You are no longer a participant in the market; you are its measure.

And this is not a dystopian hypothesis; it is already here. The increased fare you paid for an Ola during a thunderstorm, the surge in price for a last-minute hotel booking, and the discount that mysteriously vanished after a couple of views—all are shadows cast by algorithmic intent. It is not just the weather or the hour that determines what you pay, but your perceived vulnerability. Are you shopping after a long day? Using a high-end device? Travelling with a child? The system takes note.

The question has subtly shifted from “what is this worth?” to “what is this person worth to us right now?”

This shift demands critical attention, as it breaches the social contract of commerce. Pricing used to be the transparent metric between the buyer and the seller, but now it is a black-box negotiation between your subconscious and an unseen entity. In theory, personalisation is supposed to enhance CX (customer experience)—curated playlists, tailored shopping suggestions, etc. But now it introduces a silent inequity in pricing. What was once a level field has become a minefield of invisible calculations.

This is not the classical price discrimination based on age, volume, or region, but something more refined, more elusive. Something of a psychographic nature, where consumer behaviours, emotions, and digital footprints are monetised. A system that charges more because of how you think.

Herein lies the ethical dilemma. When the price you pay is determined by what an algorithm believes you will accept (not by market forces), when your very patterns of decision-making are used to shape your cost, is there any informed consent? If the system already knows what you will choose, how is it your choice?

The ability of AI to unearth perceived willingness to pay and price accordingly is amazing: data crunching at multiple levels, analysing patterns of behaviour, and predicting the outcome. Humans just can’t do this. But all this, by destabilising the autonomy and dignity of consumers, is the core issue.

When AI decodes your fatigue, your urgency, your indulgences, and your habits—and not the market dynamics—to bring price elasticity, it’s entering a morally ambiguous terrain. Tailored products to our preferences is one thing, but it is quite another to be charged based on your psychological susceptibility. The boundary between personalisation and exploitation grows perilously thin.

How can consumers become digitally conscious and avoid surrendering to the algorithmic determinism? While the system observes, the vigilant consumer can obfuscate its gaze. Here are some ways:

Browse in private mode or incognito: Algorithms depend on cookies, search histories, and behavioural trails. Incognito browsing prevents such context access, and so less chance for price manipulation.

Use VPNs or alternative locations: Many platforms adjust prices based on geographic data. A VPN can mimic a lower-cost location and reduce targeted hikes.

Change devices and logins: Using different devices or browsing without logging in disrupts user identification—so, profiling and price targeting will be difficult.

Delay purchase intentions: Algorithms respond to urgency. By stepping away and revisiting after a pause, or employing price monitoring tools, one may avoid paying a premium born of perceived desperation.

Avoid unified digital ecosystems: Single sign-ons, such as using Google or FB account across sites, centralise your data. The more fragmented the digital identity, the less the predictability and exploitation.