Dynamics of Price Elasticity And the Product Life Cycle An Empirical Study

Cover 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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