Dynamic Pricing

Dynamic pricing is a collection of  pricing strategies used by firms and organization to enhance  profits. You will begin by exploring pricing techniques that operate in  the market in real time. Then you will explore how auctions are employed  in the search to find the value of goods and services.  Consult the following video before getting started:

  • The Ideal Auction.

Instructions

Write a 5–7 page paper in which you:

  1. Compare and contrast surge versus congestion pricing. Provide a specific example of each currently in use.
  2. There are many types of auctions, each with strengths and weakness  at uncovering the real price/value of an item. Compare and contrast how  each of the following uncovers value and provide a specific example of how each uncovers value:
    • The English auction and the Dutch auction.
    • The sealed-bid first-price auction and the Vickery Auction.
  3. Auctions are widely used. Analyze an actual auction employed by each of the following:
    • A state or federal government or an agency of a state or federal government.
    • A for-profit business.
    • For each, explain what type of auction is employed and how the  auction solves the problem of finding the best price for the good or  service.
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