Information technology–enhanced pricing strategies: managerial and public policy implications

The Internet and related technologies have created opportunities for enhanced pricing strategies that have come to prominence and the benefits and potential problems of each strategy with respect to social welfare and competition are outlined.

Abstract

The Internet and related technologies have created opportunities for enhanced pricing strategies. The consequences of these pricing strategies have important managerial and public policy implications. Here, we identify five technology-enhanced pricing strategies that have come to prominence. Each strategy is introduced by one or two (short) case studies that are used as examples to illustrate key public policy and legal issues. We outline the benefits and potential problems of each strategy with respect to social welfare and competition.