Dynamic Pricing is Everywhere … Even Npr

Chicago’s National Public Radio affiliate, WBEZ, started their fall/winter pledge drive earlier this week. As usual, the station offers a range of “thank you” gifts, with different gifts for different donation amounts. Going beyond the ubiquitous tote bag and coffee mug, this year WBEZ offers a stylish black and red (good color combo when you … More Dynamic Pricing is Everywhere … Even Npr

The Uk Smart Meter Transition: Industry Structure, Market Power, and Interoperability

The UK government started an energy digital smart meter rollout in 2008, an “… £11bn scheme to put 53m devices in 30m homes and small businesses by 2020” to yield an estimated gross benefit of £16.7bn. Calling the rollout a disaster would be generous — it’s behind schedule, about £1bn over budget, and full of technical … More The Uk Smart Meter Transition: Industry Structure, Market Power, and Interoperability

Surge Pricing Like a Boss

When Bruce Springsteen decided to do a run of shows at a Broadway theater with fewer than a thousand seats, he appeared to reject the laws of economics — or at least what would seem to be in his financial best interest. He limited ticket prices to between $75 and $850 and has been allocating … More Surge Pricing Like a Boss

Two Ev Entries in the “How Cool is This?” File

Economical energy storage has long been the Holy Grail of electricity. Since 1800, when Alessandro Volta invented the electric pile (a forerunner of the modern battery), hobbyists, scientists, and engineers have experimented with chemicals and materials to create economical storage at a smaller scale than a hydroelectric dam and with a more portable technology than, … More Two Ev Entries in the “How Cool is This?” File

Solar Eclipses and the Electric Grid: Markets and Automation

Yesterday’s solar eclipse across the US amplified a dominant issue in electricity policy discussions over the past couple of years — does increasing use of distributed energy resources like solar photovoltaics make the grid more resilient, or does it lead to imbalance and inadequacy? In California during the eclipse (Financial Times), solar generation dropped compared to … More Solar Eclipses and the Electric Grid: Markets and Automation

Dot’s Airline Price Gouging Investigation and a Political Economy-based Prediction

On Friday, the U.S. Department of Transportation announced it had launched an investigation into possible “unfair practices (e.g., price gouging) affecting air travel during the period of time that Amtrak service along the Northeast Corridor was delayed or suspended as a result of the May 12th derailment.” Five airlines received letters from the agency seeking … More Dot’s Airline Price Gouging Investigation and a Political Economy-based Prediction

Power Up: The Framework for a New ERA of UK Energy Distribution

The Adam Smith Institute has published a research report I wrote for them, Power Up: The framework for a new era of UK energy distribution. From the press release: The report … argues that new technologies such as smart grids and distributed energy production can revolutionise old models of energy distribution and pricing, in the … More Power Up: The Framework for a New ERA of UK Energy Distribution

The Political Economy of Uber’s Multi-dimensional Creative Destruction

Over the past week it’s been hard to keep up with the news about Uber. Uber’s creative destruction is rapid, and occurring on multiple dimensions in different places. And while the focus right now is on Uber’s disruption in the shared transportation market, I suspect that more disruption will arise in other markets too. Start … More The Political Economy of Uber’s Multi-dimensional Creative Destruction

More Frontiers in Dynamic Pricing: New York Parking

Lynne Kiesling Felix Salmon has a very nice microeconomic analysis of a proposal for New York to lease out its parking meters and facilities to a concessionaire, with a contingent contract based on the lessee’s implementation of dynamic pricing. A sample of what makes the analysis good: The masters of variable pricing, of course, are … More More Frontiers in Dynamic Pricing: New York Parking

Frontiers in Dynamic Pricing: Spot Advertising Auctions

Lynne Kiesling According to this Ars Technica story (and a linked Bloomberg article), Facebook is going to offer a new advertising model to its potential advertisers: a spot auction for real-time ads based on changes in current events or time-sensitive things like sporting event results. The service, called Facebook Exchange, will use partnerships with other … More Frontiers in Dynamic Pricing: Spot Advertising Auctions