Traditionally used by airlines and ride-sharing services, to adjust the cost of products like groceries in real-time. NPR’s Planet Money highlighted Norway’s REMA 1000, where prices are algorithmically adjusted. The store’s head of pricing, Partap Sandhu, can instantly change prices on thousands of items. While dynamic pricing can lead to rapid price wars, resulting in lower costs, it also poses challenges. Customers may be frustrated if prices rise during shopping, so REMA ensures prices only drop while the store is open. Overnight price increases are more common. However, this digital pricing strategy could lead to supermarkets charging more during peak demand or even targeting specific shoppers willing to pay more, raising ethical questions about its implementation.
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