Among the means of implementing dynamic pricing strategies in e-commerce, online bargaining is found to be better than revenue management and online auction, because each deal actually reaches a “win-win” situation for both the buyer and the seller in the sense that the mutually agreed deal price is higher than the seller’s reserved price but lower than the buyer’s reserved price. Such feature brings profit to the seller, as well as savings to the buyer. Meanwhile when bargaining online, there is an information asymmetry between the seller side, i.e. the company side, and the buyer side, which grants a great advantage to the sellers over the buyers. This information asymmetry can be captured and exploited for financial gains through adopting a properly designed online bargaining algorithm.
Sheng, Yihua Philip and Chen, Zhong, "Online Bargaining as a Form of Dynamic Pricing and the Sellers' Advantage from Information Assymmetry" (2005). AMCIS 2005 Proceedings. 53.