What’s Dynamic Pricing? An Operations Management Scholar Explains

It can cost a bundle to see popular performers like Taylor Swift.

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Whether you’re booking a plane ticket at the last minute, hoping to snag seats for a popular concert or looking to go to a lackluster preseason football game, you might encounter what’s known as dynamic pricing.

Using this strategy, companies adjust what they are charging in response to demand. They can cut or raise the prices as high as the market will bear in real time to maximize the money they make through sales.

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