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. ( https://www.numberphile.com/videos/the-ideal-auction?rq=ideal%20auction )
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.
Include a recommendation on what type of auction might be used.
Use five sources to support your writing, including one published within the last six months. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides.
Your assignment must follow these formatting requirements:
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The file submitted in Blackboard must be an MS Word document or a PDF document.
The specific course learning outcome associated with this assignment is:
Propose ways in which a company can use dynamic pricing to better uncover value and increase revenue.