Dynamic Pricing: Let your prices rise or fall until you maximize revenue

I think this idea has potential.<p>Most freelancers/consultants know the prevailing advice for pricing you're work is to start your hourly rate off with an educated guess, based on the minimum income you need to maintain your standard of living, and how much value you think you can provide. Then, whenever you feel like you're not getting enough work, lower your rates, and when you start getting more work than you can handle, raise your rates until you're comfortable again.<p>This way, you can utilize the constant feedback of the market to ensure you're always maximizing you're revenue, given you're current abilities, marketing, and market/economic climate.<p>Doing the same for you're web service/digital products is simple enough it could even be automated. What do you think, would you price your services this way?