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When 'dynamic pricing' works – and when it doesn't

Research shows consumers sometimes accept rapidly changing prices, but not always
December 11, 2023
  • Changing prices in response to demand works better in some industries than others 
  • Plane tickets and t-shirts need different pricing strategies 

Start complaining about the steep cost of a flight to New York between Christmas and New Year (see chart), and you will probably experience limited sympathy: we tend to accept that there are only so many planes, and that prices will rise as more people want to fly over the festive season.

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