Pricing science is the application of social and business science methods to the problem of setting prices. Methods include economic modeling, statistics, econometrics, mathematical programming. This discipline had its origins in the development of yield management in the airline industry in the 1980s, and has since spread to many other sectors and pricing contexts, including yield management in other travel industry sectors, media, retail, manufacturing and distribution.
Pricing science work is effectuated in a variety of ways, from strategic advice on pricing on defining segments for which pricing strategies may vary, to enterprise-class software applications, integrated into price quoting and selling processes.
and pricing contexts, including yield management in other travel industry sectors, media, retail, manufacturing and distribution. Pricingscience work...
approach to pricing (i.e., the pricing strategy), they turn their attention to pricing tactics. Tactical pricing decisions are shorter term prices, designed...
identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy. Pricing strategies and tactics...
Psychological pricing (also price ending or charm pricing) is a pricing and marketing strategy based on the theory that certain prices have a psychological...
Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, is a revenue management pricing strategy in which businesses...
price differentiation and product differentiation. Other terms used to refer to price discrimination include "equity pricing", "preferential pricing"...
congestion pricing, where access to a lane or a facility is priced. Congestion pricing is a concept from market economics regarding the use of pricing mechanisms...
Penetration pricing is a pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate...
Transfer pricing refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control. Because of...
result. Economics portal Black market General equilibrium Price floor PricingPricingsciencePricing strategies Gregory, Mankiw, N. (5 December 2016). Principles...
place (i.e., distribution) element. Some pricing tactics, such as promotional pricing, can be classified as price variables or promotional variables and...
Predatory pricing is a commercial pricing strategy which involves the use of large scale undercutting to eliminate competition. This is where an industry...
of road pricing to reduce congestion is economically viable and overall beneficial, although there is disagreement on what form road pricing should take...
observed market prices as input. See: Valuation of options; Financial modeling; Asset pricing. The fundamental theorem of arbitrage-free pricing is one of the...
and pricing Simmons–Tierney bet Stagflation Supply and demand "International Crude Oil Market Handbook", Energy Intelligence Group, 2011 "Pricing Differences...
impairments. Reference pricing requires sufficient competition. Otherwise, consumers have no choice about providers, who in turn face less pricing pressure. Reference...
External reference pricing (ERP), also known as international reference pricing, is the practice of regulating the price of a medication in one country...
oil refineries Determining optimal prices, in many retail and B2B settings, within the disciplines of pricingscience Cutting stock problem: Cutting small...
existence of more modern approaches to asset pricing and portfolio selection (such as arbitrage pricing theory and Merton's portfolio problem), the CAPM...
Gallego is most known for his works on discrete choice models, dynamic pricing, pricing analytics, assortment optimization and dynamic programming. Among his...
accelerated pricing interactions in comparison to the usual pace, (6) a downward direction of pricing, and (7) unsustainable pricing interplay. While price wars...
Global Information