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Why Swifties, holidaymakers and the hygienic should cheer for surge pricing

At the right price, supply and demand match perfectly, the challenge is merely to find it

The “Wendy’s Dave’s Triple” is a fast-food offering that stacks two possessives and three hamburgers. I am not sure how easy it is to swallow in either regard, but what has really been sticking in people’s throats is the prospect of surge pricing at the Wendy’s fast-food chain. 

A few weeks ago, the new CEO of Wendy’s announced that the company would be installing new digital menu displays that would allow “dynamic pricing” — that is, changing the price of products in real time. A minor backlash erupted, and Wendy’s patiently explained that they would, of course, not be charging higher prices in busy times. Instead, they might be charging lower prices at quiet times, which is a distinction to ponder.

This is by no means the first such drama. A quarter of a century ago, Douglas Ivester, then chief executive of Coca-Cola, mused about vending machines that would raise the price of Coke on a hot day. He quickly backtracked after an outraged response, although reportedly these vending machines are the latest trend in Japan, so the brilliant Mr Ivester was merely ahead of his time.

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