Dynamic pricing

 

Dynamic pricing is a collection of pricing strategies used by firms and organization to enhance profits. You will begin by exploring pricing techniques that operate in the market in real time. Then you will explore how auctions are employed in the search to find the value of goods and services.
Consult the following video before getting started:
The Ideal Auction.
Instructions

Write a 5–7 page paper in which you:
Compare and contrast surge versus congestion pricing. Provide a specific example of each currently in use.
There are many types of auctions, each with strengths and weakness at uncovering the real price/value of an item. Compare and contrast how each of the following uncovers value and provide a specific example of how each uncovers value:
The English auction and the Dutch auction.
The sealed-bid first-price auction and the Vickery Auction.
Auctions are widely used. Analyze an actual auction employed by each of the following:
A state or federal government or an agency of a state or federal government.
A for-profit business.
For each, explain what type of auction is employed and how the auction solves the problem of finding the best price for the good or service.
Read the Letter from Senator Warren to Fed on Wells Fargo FHC Status [PDF].
Explain how an auction to sell the Wells Fargo consumer-facing banking division might be used to determine the value of the division.

Sample Solution

Congestion pricing, sometimes called value pricing, is a way of harnessing the power of the market to reduce the waste associated with traffic congestion. It is meant to encourage users who can be flexible with their usage to shift away from periods to times when the service or resources is less expensive. It is a common strategy in the transportation, tourism, hospitality, and utility industries. Surge pricing is a dynamic pricing method where prices are temporarily increased as a reaction to increased demand and mostly limited supply. Therefore, this form of dynamic pricing responds to market factors and helps to flexibly increase your prices.

Possibility based hypotheses of administration propose that there is no right or most ideal way to lead a gathering, or association, because of the critical number of requirements on a circumstance (Flinsch-Rodriguez, 2019). Fiedler, in his Contingency Theory of Leadership (Fiedler, 1967), proposes that the viability of a gathering is reliant upon the initiative styles of the pioneer and their favourability to the circumstance. A significant part of the hypothesis is laid out around the most un-favored associate scale (LPC). The LPC expects to measure a potential chiefs way to deal with an undertaking on a size of relationship inspired to task propelled, where the pioneer fits on the scale permits what is going on to be reasoned, and in this manner permits the recognizable proof of appropriate pioneers for assignments. The favourableness of the circumstance relies upon three qualities: pioneer part relations, the help and trust the pioneer as from the gathering; task structure, the clearness of the errand to the pioneer; and positional power, the power the pioneer needs to survey a gatherings execution and give prizes and disciplines (Fiedler, 1967). On the off chance that the pioneers approach matches what is expected from going on, achievement is anticipated for the gathering. Fiedler’s possibility model offers an extremely grim categorisation of authority, obviously characterizing which circumstances endlessly won’t bring about progress for a likely pioneer. At the senior administration level of a hierarchal construction inside an association the hypothesis can be applied openly, first and foremost because of the straightforwardness at which people can be supplanted in the event that their LPC score doesn’t match that expected of the circumstance (Pettinger, 2007). Also, and above all, is to guarantee that the senior administration are ideally suited to effectively lead the association. In any case, further down the ordered progression Fielder’s possibility hypothesis starts to hold considerably less pertinence, it becomes unreasonable according to a hierarchical point of view because of the quantity of individuals at this degree of administration. The planned operations of coordinating the pioneer with their most un-favored colleague is difficult to reliably accomplish, so a more continuum based approach is required. Figure 1: Chelladurai’s Multi-Dimensional Model of Leadership (Miller and Cronin, 2012)

There are other possibility hypotheses that give a more continuum based approach like Redding’s hypothesis of administration and the executives, but Fielder’s portrayal of how situational factors influence the initiative style expected for the circumstance is very helpful in grasping the essentials of authority (Pettinger, 2007). Chelladurai in his Multi Dimensional Model of Leadership, develops a lot of Fiedler’s hypothesis yet in a continuum based approach, in which the pioneer can adjust their administration style to fit the circumstance (Chelladurai and Madella, 2006). Chelladurai’s hypothesis is taken from sports brain research yet can be applied to a hierarchical situation. It gives a considerably more experimental categorisation of errand structure, obviously separating a plenty of circumstances that require specific initiative styles for progress. Chealldurai tracked down th

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