When complex pricing schemes dupe customers into paying more than necessary to meet their needs, those pricing schemes are contributing to bad profits.
In Japan, Goldman has taken a 43% share of Tokyo's electronic stock-options market by attaching Hull's complex pricing models to its own know-how.
Given the often complex pricing plans mobile phone vendors implement, it is usually very difficult to react to market conditions as quickly as the aforementioned case demonstrates.
Back in 2008 and 2009, concerns had arisen that consumers were tiring of the too-complex pricing schemes and were increasingly seeking out even cheaper alternatives such as Craigslist.
In an announcement this week, the company laid out complex pricing for a revamped Office 365 (more expensive for an individual, cheaper for a family, based on various assumptions about how often people purchase software).
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Technology to manage the complex pricing for packages - including the number of people and available accommodation to coincide with desired flight times - is generally not available for the web, says Mike Cogan, a partner at the travel consultancy, Equinus.
And, as Whitehead points out, it would have been simple enough to do, since Olympic ticketing does not get into complex dynamic pricing models that many pro sport teams do these days.
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But considering who is flying is just one piece of the puzzle when it comes to the complex world of airfare pricing.
This will be especially true for products whose pricing is complex, variable and therefore unpredictable to buyers, such as insurance, air travel, mobile-phone plans and hotel rooms.
That's a complex job, involving regional pricing, marketing and advertising decisions, and Coke's recent performance has been spotty.
Airline pricing is enormously complex, often confounding and angering travelers with prices that change several times a day, carry an almanac full of rules, restrictions and penalties and have huge disparities in the price of a trip in different markets or even just different days.
The pricing of these tranches is rather complex, so we will go over broad concepts that affect the price rather than a detailed explanation of pricing models.
It was assumed that accuracy required complex, finely tuned engineering that justified high pricing, but Hayek realized that the quartz watch had erased that advantage.
Airlines would also need to factor passenger weight into their ticket pricing schemes, which would make an already-complex algorithm even more complicated.
It is also the only major country that continues to maintain a health-care system with substantial elements of competitive supply, pricing freedom, patient choice, and diversity in approaching complex and uncertain medical problems.
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These days, pricing is the hottest topic in retail, and it is also the most complex.
Because road systems are complex, and because the behaviour of individual drivers is largely unpredictable, the overall impact of a particular pricing scheme is anyone's guess.
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