Abstract people Photo by Nicolas Ladino Silva on Unsplash

Price & time elasticity

Home > Flexibility > Price & time elasticity

April 2022 to March 2023

Project team

Jacopo Torriti

Jose Luis Ramirez-Mendiola

This project looks at the relationship between elasticity and flexibility.

Price & time elasticity

Price elasticity is often used to calculate the average change in demand following variations in prices. This however does not reflect how people’s flexibility varies based on the time of the day, location, work and social commitments. This project moves thinking beyond average price elasticities by critically engaging with existing work on price elasticity, focusing on time-of-day, wider societal impacts of dynamic pricing, comparing elasticities across different types of derived demand. The project puts forward innovative ways of estimating how price elasticities vary according to the time of the day, weather and occupancy levels.

What we are asking

  • What are the wider impacts of dynamic pricing?
  • Can we compare dynamic pricing of household electricity, transport and other sectors?
  • How do we measure time-of-day price elasticity?
  • Which metrics can be used for non-price elasticities?

Banner photo credit: Nicolas Ladino Silva on Unsplash