Article ID: | iaor2000282 |
Country: | Cuba |
Volume: | 19 |
Issue: | 2/3 |
Start Page Number: | 139 |
End Page Number: | 151 |
Publication Date: | May 1998 |
Journal: | Revista de Investigacin Operacional |
Authors: | Rojas Javier Gamero, Montero Jess Snchez |
Keywords: | pricing |
In this paper we study the determination of the optimal price, or at least a ‘sufficient optimal’ price, of a product, assuming a knowledge about the demand-price function, given stochastically, and given several production's cost structures. We use, basically, a determinist way in our calculations, but as we use demand's quantiles, we can build stochastic results about the price. Among the conclusions, it can be seen that, in certain realistic scenarios, the optimal price is almost insensible to the stochastic behavior of the demand, but in other realistic scenarios the optimal price is strongly sensible to the stochastic nature of the demand.