Dynamic Pricing of Restaurant Food Delivery: An Explorative Market Efficiency Study
9 Pages Posted: 23 Mar 2021
Date Written: March 22, 2021
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: Suggested Citation