Dynamics of Price Elasticity And the Product Life Cycle An Empirical Study
Dynamics of Price Elasticity And the Product Life Cycle An Empirical Study
Hermann Simon
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Still depends on p t (16) doesn't allow for a straightforward com- putation of pi. The equation clarifies, however, the following relations: (1) The optimal dynamic price pi is a compound of the optimal static price, which is given by the first term in (16) - this is the well-known Amoroso- Robinson-Relation - and the present value of the future marginal revenues caused by a price change in t. (2) If a 2 > 0, C. +, this present value is positive and pi is in all periods x
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