Dynamic pricing is an instrument of a company's pricing policy that is mainly used on the Internet
. In contrast to the usual fixed price that is valid nationally in a country, dynamic pricing pursues a pricing policy based on 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 changing competitive situations and thus achieves an attractive price perception on the part of 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.