Emeritus Prof Christopher May on Nostr: More on pricing: After a pub chain introduced 'dynamic' or 'surge' pricing to raise ...
More on pricing:
After a pub chain introduced 'dynamic' or 'surge' pricing to raise margins at times of peak demand, the FT expects this to become more common as more firms adopt yield management pricing already adopted by #airlines & for concert tickets.
The key problem for users of dynamic pricing is their customers' perceptions of #fairness.
Although a staple of critical political economy, mainstream #economics has a blindspot on fairness, which may cost these firms more than they think!
After a pub chain introduced 'dynamic' or 'surge' pricing to raise margins at times of peak demand, the FT expects this to become more common as more firms adopt yield management pricing already adopted by #airlines & for concert tickets.
The key problem for users of dynamic pricing is their customers' perceptions of #fairness.
Although a staple of critical political economy, mainstream #economics has a blindspot on fairness, which may cost these firms more than they think!