Whittier College Economics Professor Roger White shared insights with CNBC about the potential economic impact of dynamic pricing. While digital labels on the shelves may improve efficiency and consistency for stores, White notes that they will also expand retailers' ability to quickly and easily adjust costs to reflect demand, sell-by dates, supply chain shocks, and inflation, raising concerns of surge pricing for some items.
According to White, given the cost of installing this new technology, companies are expecting not just to recoup expenses but to boost profits. Other industries, including airlines, sports teams, and rideshare platforms, have already adopted dynamic pricing. “To a degree, it is surprising that Walmart and other retailers have not made this move sooner.
Read more at CNBC.com.
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