An explanation of dynamic pricing algorithms and the factors that impact them

Smart pricing algorithms can unintentionally work together to raise prices

Researchers have found that, through trial and error, algorithms designed to adjust prices based on market data can learn to mimic price-fixing tactics, even without explicit programming to do so. Over time, they "learn" that it is more profitable to avoid price wars and keep prices high when competitors lower prices.

Read about different levels of price discrimination

Price discrimination is a business practice in which different customers are charged different prices for the same product or service. It's one way for a business to boost profits and take advantage of its market position. There are three levels of price discrimination, differentiated by the consumers targeted and the reasons for discrimination.

The prices on prediction markets reflect how the collective forecasts future outcomes

On prediction markets, bettors bid up or down the price of contracts based on what they expect an event's outcome to be. Bettors bid up prices when they think an event is more likely to occur than the current contract price shows, so they buy the contracts, pushing the price higher. They bid down prices by selling these contracts when they believe an event is less likely to occur, driving the price down due to supply and demand.

What something costs is reflective of a balance in the market determined by the amount of demand relative to the supply of goods and services

Because economies are complex systems, a wide variety of issues influence this balance—including some things generally considered to be positive, like rising wages.

A nuanced break down of how tariffs are impacting prices

As tariffs have increased to their highest levels since the 1930s, economists have kept a close eye on retail prices. This chart and accompanying explainer shows correlations between key tariff announcements and news and the costs of roughly 350,000 goods from five major retailers.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Technological advancements are historically deflationary

Technological innovation can drive down costs and prices for businesses, which can increase real wages for employees. As a result, people have more money to spend and demand increases.

Amazon operates a 'flywheel' business model

Central to any understanding of the multifaceted nature of Amazon's business today is the concept of the "flywheel" at the heart of the company. Put simply, it's an idea that refers to a self-reinforcing cycle that drives the continuous growth of Amazon's various businesses, including its retail arm, its Prime subscription service, and more.

Why Google Search's ranking system combines filters, signals, and machine learning layers

Rather than static rankings, dynamic tools continually shift search results in real time. These include Twiddlers, which adjust ranking positions based on document traits and search context, and FreshnessNode, which reshuffles top results to prioritize timely informational content.

The way dating apps make money is changing

As downloads fall across the industry, dating apps are trying to stay competitive by adding paywalls to their business models. The more than $6B dating app industry is largely dominated by Match Group, the parent company of both Tinder and Hinge. This video explores how AI and human behavior are changing the industry one right swipe at a time.

Understanding how non-profit entities manage electric grids to ensure supply-demand balance

Independent System Operators in smaller areas and Regional Transmission Organizations that operate across multiple states run wholesale electricity markets. Electricity suppliers can submit competitive bids to meet estimated demand in day-ahead markets while keeping consumer costs low. ISOs and RCOs also inform markets of deviations in these estimates so that suppliers can adjust how much power they generate, which is then bought and sold in real time.

Watch how algorithms can be designed to train themselves and self-improve without human input, to the point where the optimized code is too complex for programmers to understand.

Merchants have to pay credit card transaction fees each time a card is swiped

Credit card networks such as Visa, Mastercard, and American Express must calculate fees for not only the customer, but also the merchant in every transaction.

Dollar stores often place staple items at the back of the store

This forces customers to encounter other, less-necessary items on their way there, leading to impulse buys. This video explains other ways that dollar stores make money while selling extremely cheap products, keeping dollar store profit margins relatively high.

Since its introduction, the price of bitcoin has experienced significant volatility

Driven in large part by speculation and intense social media attention during the pandemic, along with the availability of capital during near-zero interest rate periods, the price has seen at least three major crashes despite steadily increasing over the long run since 2014.

An explanation of Turing machines—the foundations of digital algorithms and computers

The device reads data, overwrites or ignores it, and then moves on to the next piece of data based on a set of programmed rules. By imagining this data as zeros and ones—binary that makes up computer code—Turing machines became the theoretical models for how any algorithm could be run on a computer if the procedure could be coded into a set of digital rules.

OPEC often intervenes to influence the price of oil

This guide explains how investing in oil works with in-depth explanations of each of the forces that control oil’s price. Oil is unique as a commodity in part because of OPEC’s role in regulating its price.

'Floating rate' loans periodically adjust their interest rates in accordance with economic conditions

When the Federal Reserve began raising interest rates in 2022 to combat inflation, interest payments borrowers owed to private credit lenders increased accordingly. Private credit funds benefited as loan returns increased, making the asset class attractive to investors at the time.

In 2020 digital coupons accounted for 29.3% of all coupon redemptions

That’s compared to 28% for physical coupons, representing the year the balance of power shifted in digital’s favor. The COVID-19 pandemic era’s lockdowns increased online shopping, which accelerated digital coupon adoption.

The origin of shortest-path algorithms and how they became optimized for navigation apps

In 1956, Dutch programmer Edsger Dijkstra spent about 20 minutes developing an algorithm to demonstrate how computers could quickly determine the shortest route between Rotterdam and Groningen. Since then, modified versions of Dijkstra's formulation comprise the processing backbone of systems such as Google Maps and Apple Maps.

Driving forces behind pay transparency laws

Since 2018, pay transparency laws have been enacted in more than a few states and cities across the US. But what’s driving the trend, from a legal perspective? This law review article attempts to answer that question, citing factors such as the Great Recession and the gender pay gap—click here to learn more.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

Data center companies are worsening housing undersupply in some regional markets

With large capital to spend, technology giants have disrupted the real estate market, driving up prices by outbidding commercial and residential developers and intensifying competition for available land. A property purchased over several years for $50M in Prince William County, Virginia, was sold to Amazon for $700M in 2025.

Hear how Advent calendars have become a pricy branding tool

Advent calendars have shifted into a high-margin branding vehicle, with retailers prioritizing elaborate design and reusable packaging. This episode questions whether premium calendars—despite their rising prices, environmental concerns, and flashy marketing—actually deliver products worth the cost.

In 2024, US airports generated over $1B of revenue—partly due to overpriced airport food

Some in the airport industry argue that charging street prices in airport restaurants isn't sustainable because it's more expensive to run a business inside an airport.

Nike made retailers pay for Air Jordans upfront to guarantee stock

Instead of paying for the inventory sold, Knight locked retailers into iron-clad agreements, where the companies would pay upfront for Nike inventory (but at a 7% discount). Knight did this to leverage debt, allowing retailers a better chance at getting the wildly popular Air Jordans.

Chaos theory—informally known as the butterfly effect—is the reason why weather forecasts are presented with probabilities rather than certainties.

The different types of stablecoins include algorithmic stablecoins

In addition to fiat-backed stablecoins, commodity-backed stablecoins, and cryptocurrency-backed stablecoins, algorithmic stablecoins use smart contract-based mechanisms to maintain a stable value by responding to supply and demand.

Chaos theory—informally known as the butterfly effect—is the reason why weather forecasts are presented with probabilities rather than certainties.

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

A vending machine run with Anthropic's AI went out of business after it was convinced to give away items for free and sell a video game console.

Electrical grids worldwide must double their power delivery capacity by 2050 to meet surging demand from AI and electric vehicles.

The term 'algorithm' originated from the Latinized name of al-Khwārizmī, a 9th-century mathematician whose works introduced Arabic numerals and the decimal-based numeral system to Europe and whose treatise 'Al-Jabr' gave algebra its name.

An initial public offering or 'IPO' is the process of a private company becoming public by putting shares of the company on the stock market for purchase.

Use this tool to calculate the dollar value of your parental mental load, from meal planning to coordinating after-school care, then see resources that help generate solutions.

Radioactive elements can introduce software errors because the ionizing radiation they produce can detach electrons from atoms, and computer code relies on the distribution of electrons.

When a Paris department store hesitated to sell Estée Lauder's perfume, she 'accidentally' broke a bottle, causing the smell to spread throughout the store and shoppers to start asking to buy the scent.

According to the physics of black holes, our 4D reality may be a hologram—a projection of information coded on a 2D surface on the edge of the universe.

In 2019, a laptop loaded with six of the worst malware in history and described as 'an exhibit of historical weaponry' sold for $1.3M.

Memecoins are a type of cryptocurrency—a form of digital currency with a wide variety of uses—created around popular 'memes,' or viral internet jokes.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

US housing costs have risen by roughly 175% between 1991 and 2026—but a growing number of Gen Zers are becoming homeowners anyway. In 2025, 4% of homebuyers were Gen Z, up from 3% the year before.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

Explore fun facts from the USPS, including unique post office buildings, a stamp that traveled past Pluto, and more.

Telehealth demand for GLP-1s for weight loss is booming as consumers seek easier access.

To reduce wrinkles in clothing, research recommends gentle wash cycles with more water and tumble drying with smaller loads and longer times.

See how fireworks are made and learn how metals like magnesium and copper are responsible for different colors.

Coral polyps reproduce via broadcast spawning, where entire reefs simultaneously release reproductive cells for about one hour, once a year.