dynamic pricing
Demand-based cost adjustment
Dynamic pricing is the practice of adjusting prices in real time based on demand, supply, or customer data.
Airlines and ride-sharing services are notorious for it: Prices surged during the holiday rush.
Hotels, concert venues, and online retailers use algorithms to maximize revenue, raising prices when demand spikes and lowering them when it drops.
Critics call it price gouging; proponents call it market efficiency.
- price sensitivityDemand's reaction to cost
- supply and demandPrice-determining economic forces
- machine learningAlgorithms that improve from data
- scarcityInsufficiency of something needed
- auctionCompetitive public sale
behavioral economics · price discrimination · airline tickets · seasonal trends · concert tickets · real-time monitoring · data mining · market segmentation · demand · e-commerce platforms · shopping cart · price drops · surge · bidding · algorithm · elastic · supply · fare
- shoppingbuying, shopping cart, shop, purchases, sale
- pricingdiscount price, overpricing, discounts, overcharge, markdowns
- rideshareUber, Lyft, rideshare, ride-hailing, taxi
- reservationsreservation, booking, hotel reservation, room reservation, table reservation
- marketing scamsfalse ads, fake reviews, fake testimonials, fake endorsements, false promises
- Platform Economymarketplace, network effects, gig economy, digital marketplaces, sharing economy