Dynamic Pricing with Blockchain Transparency: A Decentralized Framework for Fair and Secure Pricing Strategies

Abstract

Dynamic pricing strategies have become essential for businesses operating in competitive and volatile markets, but their opaque nature often raises concerns about fairness, data integrity, and trust. This paper proposes a novel framework that integrates blockchain technology with dynamic pricing to enhance transparency, security, and consumer confidence. The framework leverages blockchain's decentralized and tamper-proof architecture to store and verify pricing data while enabling dynamic adjustments based on market conditions and demand. By combining smart contracts for automated pricing updates with game-theoretic models for competitive pricing strategies, the proposed approach ensures that pricing remains fair and verifiable. Simulated experiments demonstrate the framework's ability to maintain market trust, prevent unfair pricing practices, and optimize revenue compared to traditional methods. The results highlight the potential of blockchain-based dynamic pricing as a transformative approach for modern commerce.