WASHINGTON (May 19, 2026) — The Progressive Policy Institute (PPI) released a new report today arguing that algorithmic pricing and innovation can expand consumer choice, lower prices, and reduce waste, but only if policymakers set smart guardrails rather than sweeping bans.
“Algorithmic Pricing, Increased Variety, and Less Waste: The Much-Awaited End to the One-Size-Fits-All Economy,” by Michael Mandel, Vice President and Chief Economist at PPI, shows how data-driven pricing is already benefiting millions of Americans, from transit riders receiving automatic income-based discounts to grocery shoppers finding customized discounts tailored to their budgets.
Yet several states are considering legislation that would sharply reduce the scope of data-driven pricing. Such restrictions risk pushing the economy backward, toward mass-produced goods designed for the median consumer, leaving low-income and rural households with fewer choices and higher costs.
“The real question for policymakers isn’t whether to allow data-driven pricing, but how to foster its benefits while preventing harm,” said Mandel. “Legislation like Maryland’s Protection from Predatory Pricing Act can protect consumers in essential markets like groceries while preserving tools that help budget-conscious shoppers save money.”
The report highlights how algorithmic innovation is already reshaping markets. Too Good To Go, a platform that uses algorithmic pricing to sell surplus restaurant food at discounts, has expanded to more than 20 countries. Public transit systems in San Francisco and Philadelphia are using algorithmic means-testing to automatically enroll low-income riders in discount transit programs. Telehealth and at-home testing are allowing consumers to access care on their own schedules.
Economic research cited in the report shows that access to increased product variety alone generates enormous welfare gains.
“With affordability top of mind for Americans today, we should be encouraging pro-consumer innovation, not restricting it,” said Mandel. “Moving away from the one-size-fits-all economy acknowledges that households have different tastes and needs.”
Read and download the report here.
Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us at @ppi.
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Media Contact: Ian O’Keefe – iokeefe@ppionline.org
