Case Study 1: Demand-Based Dynamic Pricing After Hurricane Sandy The Press of Atlantic City, a Pleasantville, New Jersey, newspaper, reported on July 23, 2013, that two Atlantic County hotel operators had settled with the state to reimburse customers who were "excessively and unjustifiably" charged for lodg- ing immediately after Hurricane Sandy, the deadliest and most destructive hur- ricane of the 2012 Atlantic hurricane season and the second-costliest hurricane in U.S. history. These are the first reported settlements to come from New Jersey's investiga- tion into claims of price gouging at hotels after the storm, according to a statement from the attorney general's office. Eight businesses, including gas stations as well as hotels, were part of the settlement. The settlement payment included civil penal- ties, attorneys' fees, and investigative costs. With these settlements and the first two price-gouging settlements announced in April, the Division of Consumer Affairs has assessed a total of $328,844.72 against companies, according to the statement. Discussion Question Why were hotels overcharging people who needed a place to stay after Hurricane Sandy devastated their homes? How can this be related to demand-based dynamic pricing? What seems to have gone wrong?

Case Study 1: Demand-Based Dynamic Pricing After Hurricane Sandy The Press of Atlantic City, a Pleasantville, New Jersey, newspaper, reported on July 23,2013 , that two Atlantic County hotel operators had settled with the state to reimburse customers who were "excessively and unjustifiably" charged for lodg. ing immediately after Hurricane Sandy, the deadliest and most destructive hurricane of the 2012 Atlantic hurricane season and the second-costliest hurricane in U.S. history. These are the first reported settlements to come from New Jersey's investigation into claims of price gouging at hotels after the storm, according to a statement from the attorney general's office. Eight businesses, including gas stations as well as hotels, were part of the settlement. The settlement payment included civil penalties, attorneys' fees, and investigative costs. With these settlements and the first two price-gouging settlements announced in April, the Division of Consumer Affairs has assessed a total of $328,844.72 against companies, according to the statement. Discussion Question Why were hotels overcharging people who needed a place to stay after Hurricane Sandy devastated their homes? How can this be related to demand-based dynamic pricing? What seems to have gone wrong