Lecture on pricing

DhiOnlyOne blogs about an interesting lecture by Prof. Preston McAfee:

There were several examples quoted to show how airlines price their tickets (Prof. McAfee seemed to be as confused as the rest of us – but he had more data to justify his confusion!), how hotels almost always have better fares if only you ask (sometimes many better fares depending on what segment you fall in), and how several internet retailers randomize their prices to cash in on various customer types. The lesson learnt – it always pays to probe.