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Showing posts with label Dynamic Pricing. Show all posts
Showing posts with label Dynamic Pricing. Show all posts

Tuesday, October 23, 2018

Downsides of Dynamic Pricing

Intriguing abstract and link to full PDF of technical paper:

Opportunistic Returns and Dynamic Pricing: Empirical Evidence from Online Retailing in Emerging Markets  by Chaithanya Bandi, Antonio Moreno, Donald Ngwe, and Zhiji Xu  in HBRWorkingKnowledge.

OVERVIEW — Dynamic pricing is widely applied in industries like airline ticketing, ride-sharing, and online retailing. This paper identifies two downsides of dynamic pricing: opportunistic returns and strategic choice of payment method. The impact can be significant and has implications for managers and researchers.  .... "