Overview
How might we design dynamic pricing so people can trust and act on AI output?
When to use
- Perfect for e-commerce platforms, marketplaces, and services where AI-powered dynamic pricing optimizes revenue and competitiveness.
When to skip
- Regulated price floors or fixed-rate contracts.
- B2C contexts where unexplained personal pricing erodes trust.
- Low-volume SKUs with no data for stable models.
Rules
Surge multiples with no cap or explanation.
Different prices per user with no disclosure where required.
Flickering prices every refresh on PDP.
Dynamic pricing on essentials during emergencies.
Evidence
| Product | Implementation |
|---|---|
| Uber | Surge indicator with multiplier before ride confirm. |
| Amazon | Frequent offer changes with third-party price trackers. |
| Airlines | Fare calendars showing demand-based shifts. |
| Hotel booking sites | Date-flex views with price heat by night. |