Competition Analysis in Dynamic Pricing

Competition analysis in dynamic pricing involves evaluating how competitors set their prices to adjust your own prices in real-time. This process considers factors such as competitor pricing strategies, market demand, and customer behavior. By analyzing this information, businesses can optimize their prices to attract customers while maximizing profits. For example, if a rival lowers their prices, a company might respond by adjusting theirs accordingly. This strategy helps businesses stay competitive and responsive in a continuously changing market environment.