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Optimum Conservative Price Increase Decisions in a Competitive Market
Author(s) -
Mesak Hani I.,
Clelland Richard C.
Publication year - 1988
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1988.tb00311.x
Subject(s) - microeconomics , economics , perfect competition , price setting , industrial organization , business
This paper outlines a systematic procedure for a firm's price increase decisions in a competitive market. Following a conservative approach, a previously published competitive pricing model is extended and used to address the question of where, when, and by how much prices should be raised. In its present form, the approach is useful for low priced, frequently purchased products.