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What Is Dynamic Pricing and How Is It Used in E-Commerce

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Essay

What is dynamic pricing and how is it used in e-commerce?


Definitions:

Heuristics

Mental shortcuts or rules of thumb that the brain uses to simplify decision making, which can be efficient but may lead to cognitive biases.

Representativeness

A heuristic in which individuals categorize a situation based on the extent to which it resembles, or is representative of, a stereotypical case.

Availability

The ease with which a particular idea or concept can be brought to mind by an individual.

Belief Perseverance

The tendency to maintain one's beliefs even in the face of evidence that contradicts them.

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