Consider a firm selling swimming shorts. The price response function can be described by d ( p)

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Consider a firm selling swimming shorts. The price– response function can be

described by d ( p) = 10,000 −100p. Calculate the optimal two-p eriod prices in the

cases of no cannibalization, 20% cannibalization, 40% cannibalization, 60% cannibalization,

80% cannibalization and 100% cannibalization. Depict the total profit as

a function of the cannibalization fraction. What insight do you get from this?

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Essentials Of Pricing Analytics

ISBN: 978-0367363239

1st Edition

Authors: Erik Haugom

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Question Posted: Jul 11, 2024 02:02 AM

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Consider a firm selling swimming shorts. The price response function can be described by d ( p)

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Essentials Of Pricing Analytics

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