The unintended consequences of tinkering with online prices
A new paper by a team of researchers — including two faculty from Olin Business School at Washington University in St. Louis — shows the practice of dynamic pricing can generate unintended consequences by changing the behavior of customers.
‘Dynamic pricing’ in retail can boost bottom line, research shows
Determining the right pricing strategy can make or break the overall profitability of a firm. One such strategy, dynamic pricing, long practiced in the airline and hotel industries, is showing promise and profitability in the world of retail. When applied to products sold over a short sales season—new toys, skiwear, and the like— dynamic pricing can boost profits for a firm, according to research recently conducted by two professors at the Olin School of Business at Washington University in St. Louis.