On the Future of Pricing

Abstract

Price is the most effective profit driver. In recent years we have seen a wave of innovations in pricing driven by technology. The internet, big data, and artificial intelligence enable the implementation of complex price structures, individualized pricing, ongoing time-based adjustments and performance-based pricing. Prices are increasingly expanding into areas such as the environment, traffic, social services and education. Pricing such services may be politically expedient but can lead to social tensions.