Experiments
Experimenting with a variety of prices and price structures using techniques such as a/b testing. This is particularly common in industries such as ecommerce where it is easy to change prices on the fly.Analytics
Using analytics tools to find patterns in historical data. For example, a fashion retailer might discover that their data indicates men in their twenties are price incentive to shoes under $100 but demand quickly drops after this price point.Economics
Advanced entities such as nations or banks may model the prices of things such as commodities based on economic models that consider supply and demand curves and other factors.Yield Management
Yield management is the practice of optimizing price at the level of an individual transaction. For example, airlines may attempt to optimize price for every seat in their inventory.| Overview: Price Optimization | ||
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Definition | The use of formal methods to discover optimal pricing structures. | |
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