Weather: Creating the Perfect Storm

In 1999 Coca-Cola conducted one of the earliest experiments with dynamic pricing for consumer products. Dynamic pricing has served as the primary system for airlines and hotels for many years. Their prices change daily, sometimes hourly, as anyone who has tried to book travel is very familiar with. We also see dynamic pricing in action when a retail store or a roadside stand tries to get rid of perishable products such as fruit and vegetables before they become unsellable.