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On Dynamic Pricing

Ilia Krasikov & Rohit Lamba

American Economic Journal: Microeconomics2026https://doi.org/10.1257/mic.20220124article
AJG 3ABDC A*
Weight
0.50

Abstract

This paper builds a theory of dynamic pricing for the sale of timed goods. The main friction is private and evolving valuation of the buyer prior to the date of consumption, which follows a Poisson process. A combination of membership fees and continuously increasing prices induces a threshold response from the buyer, endogenously segmenting the market along timing of purchase. This pricing mechanism achieves the deterministic global optimum. The tools developed here are shown to be useful in thinking about global incentives in dynamic mechanisms, and mapping dynamic pricing to the classic taxonomy of consumer-producer surplus and deadweight loss. (JEL D21, D82, D86)

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https://doi.org/https://doi.org/10.1257/mic.20220124

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@article{ilia2026,
  title        = {{On Dynamic Pricing}},
  author       = {Ilia Krasikov & Rohit Lamba},
  journal      = {American Economic Journal: Microeconomics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1257/mic.20220124},
}

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On Dynamic Pricing

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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