American consumers are facing growing frustration over high prices and increasingly complex pricing practices, with economists and consumer advocates examining how companies set prices and use technology to maximise revenue.
In a recent book, economist Lindsay Owens argues that businesses have increasingly turned to data analytics, artificial intelligence and sophisticated pricing systems to determine what individual consumers may be willing to pay. She says the shift has contributed to declining trust in the US economy.
The debate comes as households continue to deal with elevated living costs. Consumers are increasingly relying on credit cards and buy-now-pay-later services to cover basic purchases, according to Owens.
She also argues that weaker competition has given some companies greater room to raise prices, while data brokers and pricing technology firms can provide businesses with detailed information about consumers.
The issue has gained added significance amid tariff-related price pressures and higher energy costs linked to geopolitical tensions. Owens argues that companies could use these broader cost increases as justification for further price rises, making it harder for consumers to determine how much of an increase reflects genuine costs.
The debate highlights wider questions about competition, consumer protection, data privacy and the role of AI in determining prices across the US economy.
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