When Big Data Becomes Bad Data
A recent ProPublica analysis of The Princeton Review's prices for online SAT tutoring shows that customers in areas with a high density of Asian residents are often charged more. When presented with this finding, The Princeton Review called it an "incidental" result of its geographic pricing scheme. The case illustrates how even a seemingly neutral price model could potentially lead to inadvertent bias - bias that's hard for consumers to detect and even harder to challenge or prove. Read more.