price discrimination segments customers by what they value most.
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accounting arc – student-led conversations
with harshita multani
center for accounting transformation
on accounting arc – student-led conversations, host harshita multani interviews ron baker—author, educator, and sought-after speaker—about price discrimination and the psychology behind everyday pricing. across coffee shops, hotels, streaming platforms, and movie theaters, baker says the same principle repeats: value is subjective, so pricing must be, too.
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baker argues that pricing “behaves like art” because people don’t act like predictable particles. the goal is not perfect prediction, but rather constant testing: offering options, observing behavior, and refining strategy. that framing aligns with a growing body of hospitality research that shows how subtle cues—like removing the “$” symbol—change spending patterns. cornell researchers find diners spend significantly more when menus list numerals without currency signs, a choice many premium venues intentionally make.
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