In The Future, Everything Will Be Dynamically Priced
In the not-so-distant future, virtually nothing will have a fixed price. Say goodbye to the familiar $1.99 and hello to a price between, say, $1.39 and $2.17, based on changing supply and demand. This is the phenomenon of dynamic pricing and it is already rapidly changing the way we buy goods and services and dramatically reshaping our economy.
When Adam Smith posited an "Invisible Hand" that equalizes supply and demand of goods, it was "invisible" because it was impossible to know all the constantly changing market conditions, supply availabilities and consumer demands. But now, thanks to big data analytics, we are able to predict changing market conditions. Companies are using artificial intelligence (AI), machine learning and automation to balance demand with supply in near real-time. For the first time, all the economic forces at work (the "hand") are finally visible in the data. As a result, for the first time ever, businesses no longer have to use guesswork to set their prices: They can use data to understand what their prices should be and automatically change as supply and demand fluctuate.