How companies use AI to set prices

FEW AMERICAN business tactics are as peculiar in a freewheeling capitalist society as the manufacturer’s suggested retail price. P.H. Hanes, founder of the textile mill that would eventually become HanesBrands, came up with it in the 1920s. That allowed him to use adverts in publications across America to deter distributors from gouging buyers of his knitted under garments. Even today many American shopkeepers hew to manufacturers’ recommended prices, as much as they would love to raise them to offset the inflationary pressures on their other costs. A growing number, though, resort to more sophisticated pricing techniques.