Responsive Pricing

Pascal Courty () and Mario Pagliero

No 4036, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study the efficiency property of responsive pricing - a scheme first proposed by Vickrey - that increases prices as a function of capacity utilization. We show that although responsive pricing implements allocations that are arbitrarily close to market clearing, these allocations are not always efficient. We identify conditions under which efficiency occurs and discuss implications for the use of responsive pricing.

Keywords: dynamic pricing; L97; real time pricing; responsive pricing (search for similar items in EconPapers)
JEL-codes: D45 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ind
Date: 2003-08
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Related works:
Working Paper: Responsive Pricing (2006)
Journal Article: Responsive pricing (2008)
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