Using Dynamic Pricing to reduce risks
When demand is uncertain, one way to mitigate your risk is to rely upon Dynamic Pricing. As Koenig and Meissner puts it: ‘if price changing costs are negligible or there is uncertainty [...], applying the dynamic pricing policy is the better choice as the list pricing policy might be more substantially risky in terms of maximal expected revenue.‘
In other terms, if you don’t know how many you’ll sell, you’ll do better by changing price constantly…