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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.  .... " 

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