Dynamic Pricing of Restaurant Food Delivery: An Explorative Market Efficiency Study

9 Pages Posted: 23 Mar 2021

See all articles by Dennis Svartbäck

Dennis Svartbäck

Priceff Ltd

Anders G. Ekholm

Priceff Ltd; Lappeenranta University of Technology (LUT); University of Helsinki

Date Written: March 22, 2021

Abstract

We use restaurant food delivery sales tick data to investigate how prices reflect demand, allocate resources and impact profitability. We find that real-time demand can be used to accurately predict future demand over a short time frame, and that dynamic prices based on it reduce demand variation. Our evidence suggests that dynamic pricing of restaurant food delivery can decrease resource waste and improve producer profitability.

Keywords: dynamic pricing, restaurant food delivery, market efficiency, waste reduction

JEL Classification: G00, D00

Suggested Citation

Svartbäck, Dennis and Ekholm, Anders G., Dynamic Pricing of Restaurant Food Delivery: An Explorative Market Efficiency Study (March 22, 2021). Available at SSRN: https://ssrn.com/abstract=3809633 or http://dx.doi.org/10.2139/ssrn.3809633

Lappeenranta University of Technology (LUT) ( email )

Lappeenranta
Finland

University of Helsinki

Finland

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