SPA Pricing Education, Analytics & Decision Making Tools Webinar Series

WSJ: Gas Station Prices Constantly Change Due to AI Software | NewsMax

Gasoline retailers reportedly are using artificial-intelligence software to set optimal prices, testing textbook theories of competition. Antitrust officials worry such systems raise prices for consumers.

“In economics textbooks, open competition between companies selling a similar product, like gasoline, tends to push prices lower. These kinds of algorithms determine the optimal price sometimes dozens of times a day. As they get better at predicting what competitors are charging and what consumers are willing to pay, there are signs they sometimes end up boosting prices together,” The Wall Street Journal reported.

“Advances in A.I. are allowing retail and wholesale firms to move beyond ‘dynamic pricing’ software, which has for years helped set prices for fast-moving goods, like airline tickets or flat-screen televisions. Older pricing software often used simple rules, such as always keeping prices lower than a competitor,” WSJ.com reported.

Read complete article here:

WSJ: Gas Station Prices Constantly Change Due to AI Software.