Dynamic pricing, on the other hand, 'spurs retailers to throw less food out, to begin with by applying an algorithm that determines when grocery stores should reduce the price of perishables depending on their inventory and expiration date.'
Last year, California rolled out a residential composting program, and the state Legislature recently introduced a bill to rein in"sell by" dates from manufacturers, which prompts consumers to needlessly throw out food, the researchers say.
"Oddly enough, fewer than 25% of U.S. grocery retailers offer any kind of dynamic pricing at all, while most hotels and airlines will discount rooms and seats when they have a surplus," said the paper's author, Robert Sanders, an assistant professor of marketing and analytics at the Rady School.
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