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In the News

Artificial Intelligence and Dynamic Pricing

Graham Watson

1st December 2023

This article looks at how technology could allow for dynamic pricing, enabling supermarkets to reduce waste and charge the optimal price for their goods. As the piece notes: "dynamic pricing could be worth an additional 10% to a retailer's fresh food revenues...because it will help it to sell items that would otherwise have to be binned."

The AI associated with the technology of Israeli firm Wasteless is already common in Europe and seemingly on the point of being rolled out in the UK. However, does dynamic pricing necessarily imply greater efficiency and lower prices? Some argue that it will permit price discrimination contrary to consumer interests and that the absence of a price anchor may create uncertainty and lower sales.

Please read: Why food discount stickers may be a thing of the past (BBC News)

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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