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Heuristic pricing rules not requiring knowledge of the price response function

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Gahler, Daniel ; Hruschka, Harald
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Date of publication of this fulltext: 06 Sep 2022 04:59

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Heuristic rules are appropriate, if a decision maker wants to set the price of a new product or of a product, whose past price variation is low, and budget limitations prevent the use of marketing experiments or customer surveys. Whereas such rules are not guaranteed to provide the optimal price, generated profits should be as close as possible to their optimal values. We investigate eleven ...


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