ajaz_eco_204_2012_2013_chapter_16_Market_Power

The stores owner al falack said he often sells

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Unformatted text preview: hat changed every minute. But now, prices of everything from clothing to toilet paper are fluctuating dramatically online. Julia Angwin explains on The News Hub. The fast-moving Internet pricing games used by airlines and hotels are now moving deeper into the most mundane nooks of the consumer economy. Deploying a new generation of algorithms, retailers are changin g the price of products from toilet paper to bicycles on an hour-by-hour and sometimes minute-by-minute basis. The pricing wars were fought last month over a General Electric microwave oven. Sellers on Amazon.com Inc. changed its price nine times in one day, with the price fluctuating between $744.46 and $871.49, according to data compiled by consumer-price research firm Decide Inc. for The Wall Street Journal. Best Buy Inc. responded by lifting its online price on the oven to $899.99 from $809.99 after the Amazon prices rose, then lowering it again after Amazon prices for the oven dropped. The most frequent price adjustments are occurring among Web stores selling products on Amazon, which encourages ruthless competition between retailers vying for the top spot amon...
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