A Radical New Idea
| Peter Klein |
Dynamic pricing is a relatively new idea that reflects consumer demand. If a show is popular, the system will increase the price of that show. Once it loses steam, the price will be lowered proportionally.
Prices that adjust according to supply and demand! Who’d a thunk it?
To be fair, the writer, CNET’s Don Reisinger, is talking about Apple’s plans to offer variable pricing on iTunes. But it’s still a startling statement, to an economist. I guess I shouldn’t really be surprised, though.