Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 22 May 2023
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https://casecent.re/p/191706
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Abstract
This note provides a comprehensive exposition to the topic of dynamic pricing (whereby the fee customers are charged is time-dependent). It covers the motivation for firms to engage in dynamic pricing, provides a typology of the main formats dynamic pricing can take, and is replete with examples that showcase how dynamic pricing is implemented in practice. The connection between dynamic pricing and price discrimination, as well as algorithmic pricing, is also presented. The note further highlights potential pitfalls firms might experience when running dynamic pricing schemes and offers ways for them to avoid or mitigate those risks.
About
Abstract
This note provides a comprehensive exposition to the topic of dynamic pricing (whereby the fee customers are charged is time-dependent). It covers the motivation for firms to engage in dynamic pricing, provides a typology of the main formats dynamic pricing can take, and is replete with examples that showcase how dynamic pricing is implemented in practice. The connection between dynamic pricing and price discrimination, as well as algorithmic pricing, is also presented. The note further highlights potential pitfalls firms might experience when running dynamic pricing schemes and offers ways for them to avoid or mitigate those risks.