Dynamic Pricing: Trends, Challenges and New Frontiers

Modern dynamic pricing has emerged as a computer-automated strategy that has revolutionized pricing methodologies and consumer interactions across various industries. This paper delves into the intricate domain of dynamic pricing, presenting an overview of its significance and the complex factors influencing its implementation. Within the realms of computer science, this subject involves heuristic development, data science, and the design of robust system architectures. The paper extensively examines the application of dynamic pricing in critical sectors such as e-commerce, travel, energy, electric vehicle charging, cloud computing, and ride-sharing services. It highlights the strategies and algorithms employed in each sector, showcasing their effectiveness in adapting to dynamic market conditions. The pivotal role of competitive forces, demand dynamics, inventory management, and price discrimination in shaping dynamic pricing strategies is explored in depth. Furthermore, this paper identifies promising avenues for future research in dynamic pricing, spanning industries such as transportation, energy, online platforms, industrial parks, automated machine learning, emerging technologies, and real-time pricing. It serves as a comprehensive guide to the contemporary state-of-the-art in dynamic pricing, shedding light on its multifaceted nature, broad applications, and exciting prospects for advancement across diverse industries.