dynamic pricing

Dynamic pricing is an instrument used in a company's pricing policy, particularly on the Internet.

In contrast to the usual fixed price that applies nationally in a country, dynamic pricing sets prices on the basis of the competitive environment, capacity utilization or other criteria.

Amazon, for example, uses dynamic pricing to adjust its prices for new goods in real time to changes in the competitive environment and thus achieve an attractive price perception among customers. Another example of dynamic pricing that takes capacity criteria into account is the pricing policy of airlines. The prices for flights offered online change as soon as certain capacities are exhausted. Dynamic pricing is also used in a different context in online auctions, where prices change upwards with each bid, or in power shopping, where prices fall the more buyers join together in a joint purchase.