Benefits and Drawbacks of Dynamic Pricing for a Company
Select a company that uses (or has used) dynamic pricing.
Explain how the company you have chosen uses dynamic pricing. Discuss the
benefits and drawbacks of dynamic pricing for that particular company. Conclude
with a summary of your findings (Perloff, 2007)
Explain the macroeconomic and microeconomic concepts and how
they relate to the management of a global organization.
Critically analyze and evaluate real-life economic problems
and opportunities by applying economic concepts, principles, and theory.
Discuss the opportunities provided by technology for
businesses.
As discussed in Perloff’s text, Dynamic Pricing is an
extreme form of price discrimination, where each consumer is charged the most
they would be willing to pay. See Perloff.
Since Perloff does not explicitly define dynamic pricing,
you can discuss examples of fluid pricing or online auctions. It would be good
to make the distinction between extreme, individualized price discrimination
and fluid pricing. They are distinctly different practices. The former is
predatory. The later is welfare enhancing.
