Algorithmic pricing not yet a ‘menace’ to inflation – BoE study
Dynamic and personalised pricing may upend CPI measurements and expectations, research says
Although algorithmic and personalised pricing are on the rise, they are not contributing to inflation, new research from the Bank of England shows.
In a blog post on April 7, Clare Lombardelli and Rupal Patel say firms that mainly display prices on the internet, such as online travel and hotel platforms, dynamically alter what they charge based on the ebb and flow of demand.
The authors say the proportion of hotel room rates that change price at least once a month has “risen from around 15% in
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