News & insights
Date: October 2024 | Sector: Communications, media & payment systems | Expertise: Market dynamics
There is method to the dynamic pricing madness, says David Jones
The Canadian economic think tank, the C.D. Howe Institute whose mission is to raise living standards by fostering economically sound public policies, has published an intelligence memo by David Jones, a CEPA director. The memo, prepared in response to huge demand and surging ticket prices for the Britpop band Oasis’ upcoming UK tour, considers the issues around the dynamic pricing mechanism that was employed. It first appeared in the Globe and Mail newspaper.
Dynamic pricing, which allows prices to fluctuate in response to changes in market conditions, is rarely popular. However, when used in the right context and appropriately implemented, the memo outlines the important role that the mechanism can play in helping to manage the level of demand and even to incentivise additional supply.
The memo is available online and can be downloaded from the C.D. Howe Institute. If you either have any feedback or if you would like to find out more about the use of dynamic pricing, please get in touch with David or another expert in the CEPA team.
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