Peak pricing is a pricing strategy where the cost of a service or product increases during high-demand periods. This approach is commonly used in industries like transportation, utilities, and entertainment, where demand fluctuates based on time or season. For example, ride-sharing services may charge more during busy hours to manage demand and ensure availability. The goal of peak pricing is to encourage consumers to adjust their usage patterns, helping to balance supply and demand. By raising prices during peak times, companies can maximize revenue while also incentivizing customers to use services during off-peak hours, leading to a more efficient allocation of resources.