Price Discrimination Explains Everything
By Arnold Kling
If you have ever had the annoying experience of buying a plane ticket through a portal such as Kayak, then seeing the final price jump $10 or $40 at check out, you have probably found yourself on the receiving end of dynamic pricing.
If you have ever walked into a car dealership and had the salesman ask, “What would it take to put you in a new car today?” you have found yourself on the receiving end of dynamic pricing. It doesn’t take a fancy computer program to do it.