Question

In reality, the dynamic pricing problem is more complicated because demand is unpredictable and customers behave strategically in that they may decide to delay their purchases if they know that prices will drop over time.

a) True
b) False

Answer 1

Dynamic pricing is more complicated in reality due to unpredictable demand and strategic customer behavior. This behavior can impact the effectiveness of dynamic pricing strategies.

Step-by-step explanation:

Dynamic pricing is the practice of adjusting prices in real time based on factors such as demand, supply, and other market conditions. In reality, the dynamic pricing problem is more complicated because demand is unpredictable and customers may behave strategically by delaying their purchases if they anticipate future price drops.

This behavior can impact the effectiveness of dynamic pricing strategies. Dynamic pricing is more complicated in reality due to unpredictable demand and strategic customer behavior. This behavior can impact the effectiveness of dynamic pricing strategies.