• Assuming that for a thriving business there are enough

Pricing Algorithms players in the market who hesitate to form a cartel,

Algorithmic pricing is the practice of applying machine learning algorithms like these helps in keeping top of the
and artificial intelligence to set optimal prices in order to competitors.
maximize revenue, enhance profit, or achieve other business
goals set by retailers. One of the most effective ways to get a • The dynamic pricing can be used in conjunction with
competitive advantage is through algorithmic pricing. sales and marketing as and when needed.
Pricing Algorithms are good • In most of the times it helps in better management of
Pricing Algorithms thrive on the customer data that mostly
the inventory.
includes PII, currently there are no strong data protection
laws except few like GDPR, CCPA in few parts of the world,
• It lets the organization to adjust to the competition and
are not into full force, hence access the customer and using
maintain its position in the market.
them to get insights which is otherwise not possible is still
taking place. Assuming that the algorithms in future use less
• This provides flexibility and freedom to focus on other
of data that falls under PII and violates any data regulations
aspects of the business.
are still effective price fixers, the below can be few benefits
of it.
• The applications of these algorithms will be endless and
• Pricing algorithms can be the best way of boosting sales.
helps in entering into new markets.
• It can be the used to maximize the profits and sustain in
the market for longer period and the services when used Though the regulations to some extent are needed in
by the masses the prices of which auto regulates. this regard for maintaining the right competition levels
and stopping the organizations from taking undue
• It can create higher levels of demands. advantages but it also should be remembered that the
concept of ‘Laissez-faire’ is not violated by the
• It allows for pricing to reflect demand. authorities just to stay on top of the budding
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organizations.
• The provides the most needful insights of the customers
behavior