Sep 7, 2020 00:54
4 yrs ago
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English term

surge pricing

GBK English to Greek Bus/Financial Economics
Definition from TapRun.com:
A strategy that increases prices as demand increases and decreases prices as demand shrinks. Energy companies often use this strategy, as the cost of electricity will vary over the course of a day.
Example sentences:
Apart from the cab industry and the food delivery industry there are other industries which are naturally suited to applying surge pricing in order to alter consumer and service provider behavior. (Medium)
Concerts and sporting events are obvious candidates for surge pricing because they involve large groups of people trying to leave the same place at the same time, which could easily overwhelm the supply of available drivers. But there are also examples of more geographically diffuse surge pricing events, often coinciding with holidays or inclement weather. (Todd W. Schneider)
In fact, surge pricing effectively makes the peak period more attractive for that subset, as there is likely to be less congestion when price-sensitive shoppers shift to off-peak periods. (Anderson School of Management)
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