System and method determining reference values of sensitivities and client strategies based on price optimization
US8170905B2 · kind B2 · utility
Assignee
Inventor
Key dates
| Filing date | Nov 30, 2007 |
| Grant date | May 1, 2012 |
| Priority date | — |
| Expiry date | Feb 27, 2031 |
Classification
- Technology area (CPC G)Physics
- CPC primaryG06Q30/0201
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
A computer implemented method for determining the reference values of sensitivities and strategies for price optimization demand models from a profit function and current product price. A total profit objective is expressed as the maximization of profit and volume, where a strategy parameter represents the relationship between profit and volume. From the total profit objective, the bounds of the strategy parameter are expressed as conditional inequalities relating the bounds to functions of the unit profit at the current rate and average volume. The strategy parameter is then set to the average of these bounds. The reference elasticity is expressed as a function of the unit profit function and average volume. The resulting reference values can be used in a price optimization system to generate recommended prices that relate to an industry's current pricing scheme.
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.