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Algorithmic pricing

Algorithmic pricing refers to using computer algorithms to automatically adjust prices of products or services based on various factors. These factors can include market demand, competitor pricing, time of day, and customer behavior. By analyzing large amounts of data quickly, algorithms can help businesses optimize their pricing strategies to maximize profits and remain competitive. For example, airlines and online retailers often use algorithmic pricing to change prices dynamically, ensuring they capture the best possible revenue from their sales while responding to current market conditions.

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    Algorithmic pricing refers to the use of complex computer algorithms to set and adjust prices for products or services in real-time. These algorithms analyze various factors, such as demand, competition, customer behavior, and market trends, to determine the optimal price point that maximizes profits and sales. Unlike traditional pricing methods, which may rely on fixed prices or simplistic strategies, algorithmic pricing enables businesses to respond quickly to changes in the market. This approach is commonly used in e-commerce, airlines, and hospitality to optimize pricing dynamically based on data-driven insights.