On Instacart: same store, same item, different price

Summary

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Marketplace Morning Report — Episode Summary

Episode Title: On Instacart: same store, same item, different price
Date: December 10, 2025
Host: David Brancaccio

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Overview

This episode centers on recent findings about algorithmic price differences for identical groceries on Instacart, explores expectations for an imminent Federal Reserve rate cut, provides commodity price updates with a focus on surging precious metals, and features an interview with freshly minted Nobel laureate Peter Howitt on artificial intelligence and economic inequality.

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Key Discussion Points & Insights

Instacart Pricing Disparities (00:46–02:13)

• Main Theme: A new Consumer Reports-led study finds significant variation in prices for identical products purchased through Instacart, even when bought at the same store at the same time.
• Details:
  • Study conducted with Consumer Reports, Groundwork Collaborative, and More Perfect Union.
  • Over 400 volunteers shopped for the same 18–20 products; each took screenshots at checkout without completing purchases.
  • 75% of products were offered at different prices to consumers, sometimes varying by 23%.
  • For a typical family of four, these differences could amount to $1,200 per year.
  • Instacart’s Response: Claims that retailers control pricing, and that only a small subset used Instacart's Eversight advertising tech for “limited online pricing tests.”
• Quote:
  • "Consumer Reports says every one of their experimental shoppers was subject to Instacart's algorithmic price experiments." (Nancy Marshall Genser, 01:52)

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Federal Reserve Rate Cut & Economic Outlook (02:13–03:30)

• Main Theme: Anticipation of a Federal Reserve interest rate cut, market reactions, and the political landscape's influence.
• Key Points:
  • Host predicts a quarter-point rate cut later that day.
  • Investor focus is also on how Fed Chair Powell frames labor market support vs. inflation control (dot plot discussions).
  • Guest Susan Schmidt (Exchange Capital Resources):
    • Watches for Fed’s “dot plot” projections for 2026 rate plans.
  • Politics: Trump administration favors lower rates, while the Fed exercises caution due to inflation worries.
• Quote:
  • “The Fed has been cautious with Chairman Powell worrying about the underlying data and what that means for inflation. So we'll see this balance play out.” (Susan Schmidt, 02:53)

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Commodity Markets: Silver Hits Record High (04:31–05:23)

• Main Theme: Precious metals surge, with silver passing $60/oz for the first time, driven by both monetary policy expectations and tech industry demand.
• Key Points:
  • Silver price at $61.51/oz, up 1.1%.
  • Rate cut expectations drive trader optimism.
  • Strong industrial demand (EVs, solar panels) and global shortage.
  • Gold, platinum, and palladium have also hit record levels amid economic uncertainty.
• Quote:
  • "Silver conducts electricity better than gold or copper and is widely used in the manufacture of electric vehicles and solar panels." (William Lee Adams, 04:52)

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Nobel Economics Laureates on AI & Inequality (05:23–09:03)

• Main Theme: Interview with economist and Nobel laureate Peter Howitt about the impact of AI on jobs and prosperity.
• Key Points:
  • Howitt tempers alarm over AI, likening it to previous general-purpose technologies that initially displaced jobs but ultimately created new ones.
  • AI’s potential to exacerbate inequality is highlighted.
  • Howitt ran an experiment, asking ChatGPT to write about AI's job-destroying potential, and found the output "pithy and very accurate."
  • Emphasizes the importance of AI regulation to ensure broad social benefit.
• Quotes:
  • “We don't see a good reason yet for thinking that it's not going to be like other general purpose technologies...they have always sparked off fears of automation, technological unemployment...but in the end, they've created new jobs.” (Peter Howitt, 06:06)
  • “That's a recipe for growing inequality. Some people are going to earn tremendous amounts and others not so much.” (Peter Howitt, 07:29)
  • “If you can't bring a majority of people on board in a democratic system, you're going to have trouble deploying that technology to its full advantage.” (Peter Howitt, 08:33)

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Notable Quotes & Memorable Moments

• “Consumer Reports says every one of their experimental shoppers was subject to Instacart's algorithmic price experiments.” (Nancy Marshall Genser, 01:52)
• “The Fed has been cautious with Chairman Powell worrying about the underlying data and what that means for inflation. So we'll see this balance play out.” (Susan Schmidt, 02:53)
• “Silver conducts electricity better than gold or copper and is widely used in the manufacture of electric vehicles and solar panels.” (William Lee Adams, 04:52)
• On AI paranoia: “We don't see a good reason yet for thinking that it's not going to be like other general purpose technologies...but in the end, they've created new jobs.” (Peter Howitt, 06:06)
• On using ChatGPT for the Nobel lecture: “Within five seconds it produced this really pithy and very accurate and actually quite subtle paragraph.” (Peter Howitt, 07:13)
• “If you can't bring a majority of people on board in a democratic system, you're going to have trouble deploying that technology to its full advantage.” (Peter Howitt, 08:33)

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Timestamps for Key Segments

• Instacart Price Study: 00:46–02:13
• Fed Rate Cut Analysis: 02:13–03:30
• Commodity Markets Update: 04:31–05:23
• Nobel Interview on AI & Inequality: 05:23–09:03

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Tone: Engaged, informative, and slightly conversational, especially during the Nobel interview. The host maintains a steady, accessible delivery throughout the episode.

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For Further Listening

Listeners interested in economic impacts of tech, consumer rights, market trends, and the future-of-work debate will find this episode relevant and insightful, thanks to concise reporting and brief, expert-driven interviews.

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Transcript

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[D]

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Are you paying more or maybe.

[E]

Less at the same retailer for the same paper towels or English muffins than your friends and neighbors? I'm David Brancaccio in Los Angeles. A new report finds different customers were charged different prices for identical products ordered through the online grocery delivery delivery service Instacart. The new study was released by several consumer groups that designed a shopping experiment with hundreds of volunteers.

[F]

The study was conducted by Consumer Reports and the Progressive Group's Groundwork Collaborative and More Perfect Union. They ran an experiment with more than 400 volunteers who shopped on Instacart for the same 18 to 20 products at the same time from the same stores. The shoppers took screenshots of the prices at checkout but didn't click the buy button. Consumer reports says about 75 of the products they checked were offered at different prices to different customers, varying by as much as 23%, the report says. Based on what Instacart says a typical family of four spends on groceries, the differences could add up to about $1,200 per year. Consumer Reports says every one of their experimental shoppers was subject to Instacart's algorithmic price experiments. Instacart says retailers control the prices, and a small subset was using Instacart's advertising Eversight technology to run limited online pricing tests. I'm Nancy Marshall Genser for Marketplace.

[E]

Here's my not so rash prediction now the Federal Reserve will lower a key interest rate by a quarter of a percentage point just over four hours from now. More interesting, I think, will be how the Fed chief frames the need to bolster the job market versus the need to control inflation. Susan Schmidt is portfolio manager at Exchange Capital Resources.

[G]

I'll be looking at the information that of course comes out in the press release after the announcement and importantly the dot plot. That'll give us a sense of what the governors are thinking about for 2026 and the market's gonna be keen into that to think about where interest rates might be moving.

[E]

It's the new year that's very much on the minds of Fed watchers.

[G]

Remember that the Trump administration has been very positive on lowering interest rates, trying to help stimulate the economy. The Fed has been cautious with Chairman Powell worrying about the underlying data and what that means for inflation. So we'll see this balance play out. Investors are going to shift that focus to what happens in 2026 and what does this mean for interest rates going forward.

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[E]

Of silver has hit a fresh record, rising above $60 per ounce for the first time. It's up another 1.1% this morning, 61.51. The BBC's William Lee Adams reports Traders.

[D]

In the precious metal are reacting to an expected U.S. federal Reserve interest rate cut on Wednesday. But experts say there's another reason for the high prices. That's the strong demand for the metal from the technology industry, which has caused a global shortage. Silver conducts electricity better than gold or copper and is widely used in the manufact manufacture of electric vehicles and solar panels. And silver isn't the only metal hitting record highs in 2025. In November, gold crossed the $4,000 an ounce mark for the first time, and the price of platinum and palladium have Also climbed this year as traders respond to global economic uncertainty. I'm the BBC's William Lee Adams for Marketplace.

[E]

Today's the ceremony to honor this year's Nobel Prize recipients, including the three economists being honored for their work on how technology done right can Dr. Think Artificial intelligence, for instance. The three economics honorees today are Philippe Aguillan of College de France, the Insead Business School, and the London School of Economics. Also Joel Mokier, a professor at Northwestern. Also Peter Howitt, professor emeritus at Brown. I spoke to Professor Howat starting with some congratulations.

[I]

Thank you very much.

[E]

Regarding AI and prosperity, is this time different? Do you worry that this AI stuff is going to ruin more lives than it is? Then it helps.

[I]

Well, I do worry, you know, we don't see a good reason yet for thinking that it's not going to be like other general purpose technologies that have come to us and eventually benefited us a great deal. You know, starting with the steam engine and going through electrification and now AI. These things have always sparked off fears of automation, technological unemployment, redundancy, and they have indeed created a lot of job loss, typically. But in the end, they've created new jobs that were never even thought of before.

[E]

And you know, I try to keep a strong focus on economic inequality. When you put an inequality overlay over this question, some people are going to get a lot more prosperous because of AI. But you know, the question becomes, will it make more people unprosperous? I guess is one way to think about it.

[I]

Well, that's certainly one of the big worries. And in preparing my Nobel lecture, just out of curiosity, I went and asked Chat GPT to write a serious paragraph on the job destroying potential of generative artificial intelligence. And within five seconds it produced this really pithy and very accurate and actually quite subtle paragraph. I'm thinking, okay, if I was a speech writer, if I was really, really good at it, I could be writing speeches 10 times as fast as I used to be using this sort of thing as a first draft. And that's a recipe for growing inequality. Some people are going to earn tremendous amounts and others not so much. However, it might be that there are other new services that we can start providing with one another that are going to make other people just as productive as well, and it's going to spread the wealth.

[E]

Now, to be clear, you ended up writing your Nobel lecture, right? You didn't let Chat GPT do the funnel product?

[I]

Yes, I did.

[E]

I did.

[I]

I included one little paragraph in there just for effect. But I'll tell people that that wasn't really me.

[E]

Okay, okay, okay. As long as you know, full disclosure. Right. Would you want to let the development of AI go unregulated?

[I]

No. Personally, I would not. Because there are always choices that you can make with the development of a technology. In some ways have more potential for destroying jobs. Others have more potential for making jobs more productive. If you can't bring a majority of people on board in a democratic system, you're going to have trouble deploying that technology to its full advantage. People are going to find ways to block it through the political system and places other than just in the marketplace.

[E]

Peter Howitt, professor emeritus at Brown University with a freshly minted Nobel Prize for Economics. Thank you very much.

[I]

Thank you, David.

[E]

I'll never forget another laureate who on this program brushed me back in an interview by referring to his economics Nobel as the Swedish thingy. He sure showed me was boss. In Los Angeles, I'm David Brancaccio. You're listening to the Marketplace Morning report.

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