ISSN:
1540-5915
Quelle:
Blackwell Publishing Journal Backfiles 1879-2005
Thema:
Wirtschaftswissenschaften
Notizen:
Price determinants as well as strategies can be studies by use of simulation, particularly if cost and price relationships can be related to market activity [1] [9] [11]. But, through the use of dynamic programming, given the market conditions, one can extend the analysis to include an optimal strategy.This paper describes a dynamic programming approach to studying price strategy. A model is developed to show that in a market characterized by cost/volume and price/volume relationships, profitability can be extended beyond that resulting from a dominant market strategy to an optimal maximizing strategy. Extension of the model is suggested for studying (a) sensitivity of a strategy (solution) to price level and cost changes, (b) optimal timing of withdrawal, and (c) present value analysis.
Materialart:
Digitale Medien
URL:
http://dx.doi.org/10.1111/j.1540-5915.1976.tb00675.x
Permalink