Firms will often implement randomized pricing in an attempt to reduce
A)only competitor price information.
B)only consumer price information.
C)both customer and competitor information about price.
D)randomized pricing does not affect information available to consumers or competitors.

Question

Quizplus · Accepted Answer

Randomized pricing is implemented to reduce the amount of information available to both customers and competitors about the price. By constantly changing prices, competitors cannot easily determine the pricing strategy of the company and customers cannot compare prices easily, thus reducing the likelihood of price wars and loss of sales to competitors.

Firms Will Often Implement Randomized Pricing in an Attempt to Reduce