Is a decline in price cutting good news for consumers

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DemandTec is a firm that provides software to retailers, such as department stores, that allow the firms to make better decisions about when to increase or cut prices, based on changes in demand, changes in costs, and other factors. DemandTec and firms selling similar software have allowed smaller retailers to adopt pricing strategies that had long been used by larger retailers, such as Wal-Mart. According to an article in the Wall Street Journal, use of this software has reduced the amount of price cutting that retail firms engage in following a fall in demand. Is a decline in price cutting good news for consumers? Good news for the firms involved? Good news for both? Briefly explain.

Reference no: EM131021692

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