Tinder charges more for young gays, lesbians and the over-30s, says Which?
independent.co.uk
independent.co.uk
such "second order price discrimination" is completely legal and quite common.
It's called second order because it's indirect: blue plate special at 5pm is a cheap complete meal. It attracts senior citizens because they are time flexible and prefer to eat early, and have lower budgets, and the restaurant likes it because that's a quiet time so why not fill it with customers. But anybody can buy it.
I'm not saying this is what's happening with Tinder, I'm saying I apply the same cynicism-of-doublespeak to greedy corporations as I've now learned to apply to SJWs.
And if it is what is happening with Tinder, it could be that they priced different tiers on the basis of usage and it turns out that different groups just have different usage profiles.
Or they could have determined which groups have less price elasticity of demand and charged more for services that those groups want. This could be cast as unfair, but is simply charging "what the market will bear"
To dating apps that aren't specifically gay/bi focused, everything else is a rounding error.
The OKCupid founder's data book was really eye-opening.
(the first google result for "okcupid founder data book")
Yet these are recognized by straight people as racism, but straight people don’t recognize, let’s be fair, anything at all as discrimination against gay people.
Then looking back, there's IBM who profited by building systems to help Nazis process the Holocaust. And then later built a punch card system for Japanese internment camps in the US, during a time when asians, and Japanese people especially, were highly discriminated against in WW2. People were hurt here for no good reason, and all as an 'economic decision'. In my eyes, IBM is culpable for the atrocities they helped create, even if it was 'just for money'.
Bringing it back to Tinder, the question is why do we need this kind of price discrimination? How is it >consistently< determining that gays, lesbians, and over-30s should be charged more than their younger and hetero counter parts? The key word is consistently, because that feels like targeting. Why not have a flat fee structure, since we're all created equal in the pursuit of a romantic partner? If Tinder wanted to make more money, then just increase the base cost for everyone, not just for certain people in protected classes.
Can anyone imagine if Netflix said, hey we're gonna increase the price for gay and old people by 20%. Like Why? Everyone enjoys watching movies and shows, it's not like gay and older people have more fun watching them than heteros. It's equal enjoyment.
As for a flat fee structure--they're charging more to those they think will be willing to pay more. Either because they can afford more or because they're more desperate. Thus those with better prospects get charged less.
It definitely creates some perverse incentives. It is in their best interest to not show you your best matches.
When is it OK to charge different cohorts of users different prices? Why is it ok in some instances, and not in others?
If we charged white hetero males (of which I am one) more than everyone else, would that be OK because they are NOT part of a minority?
To give a bit of context of how I'm looking at this for our business, we're in the sleep tech space, and lack of sleep is a huge issue in the African American community due to socio-economic reasons. I've got some designs on how we can offer African Americans a lower price on our product than other user groups. I doubt there would be a "backlash" because it's a discount, rather than an increase in price...which is really just perspective...