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Price point

A price point is a specific price level on a scale of possible prices for a product or service, selected to maintain relatively high demand while maximizing revenue or profit, often representing a point along the demand curve where consumer sensitivity to price changes is minimized.^[1]^[2] Unlike the broader concept of "price," which refers to the actual amount paid by a consumer, a price point is a strategic, hypothetical benchmark used by businesses to test and optimize market positioning.^[2] In marketing and retail, price points play a critical role in influencing consumer behavior and competitive strategy, as they help identify optimal thresholds where demand remains elastic enough to drive volume without eroding margins.^[1] For instance, retailers often use multiple price points within a product line—ranging from low to high—to cater to different customer segments, allowing buyers to self-select based on perceived value and budget.^[2] This approach, sometimes informed by psychological pricing tactics like ending prices in .99, exploits cognitive biases to make offerings appear more affordable, thereby boosting sales at key demand inflection points.^[1] From an economic perspective, determining effective price points is challenging in large, dynamic markets where full demand curves are difficult to map precisely, leading businesses to rely on empirical testing such as A/B pricing experiments to approximate profitable levels.^[2] Notable strategies include price skimming, where initial high price points capture premium revenue from early adopters before gradually lowering to broader segments, as seen in technology product launches.^[1] Overall, mastering price points enables firms to align pricing with market elasticity, customer perceptions, and competitive dynamics, directly impacting long-term profitability and market share.^[1]^[2]

Fundamentals

Definition

A price point refers to a specific, discrete price level at which a product or service is offered for sale to consumers, strategically chosen to align with market dynamics such as consumer willingness to pay and competitive positioning.^[3]^[4] This term is commonly used in economics and marketing to denote a targeted price on the spectrum of possible pricing options, where demand is anticipated to remain relatively stable or optimal for sales volume and profitability.^[5] Price points differ from related pricing concepts, such as the list price, which represents the initial or suggested retail price quoted by the manufacturer or seller before any adjustments, and the transaction price, which is the final amount actually paid by the buyer after accounting for discounts, negotiations, or incentives.^[6]^[7] While a list price serves as a starting benchmark for negotiations, a price point emphasizes the offered level intended to attract buyers at that exact figure, and the transaction price reflects the realized exchange value, often lower than the initial offering.^[8] At its core, a price point consists of basic elements including its nominal value (the numerical amount), currency denomination (e.g., USD, EUR), and its role as a signaling mechanism in buyer-seller interactions, conveying perceived value, quality, or accessibility to influence purchasing decisions.^[9] For instance, retailers often select a price point like [$9.99](/page/9.99) for a consumer good such as a gadget or apparel item, positioning it just below a psychological threshold to enhance appeal without delving into specific tactics.^[10] This selection functions as a clear communication tool, helping to match supply with demand at a viable level.

Historical Context

The broader concepts underlying price points, such as fixed pricing and market signals, trace their roots to ancient markets, where bargaining dominated transactions in bazaars across the Middle East and Mediterranean regions, but fixed pricing emerged for essential commodities to maintain social order and prevent exploitation. In ancient Rome, for instance, emperors like Diocletian issued edicts in 301 CE to set maximum prices on goods amid inflation, representing an early example of government price controls in volatile economies.^[11]^[12] During the mercantilist era from the 16th to 18th centuries, European governments promoted exports and restricted imports through tariffs and bounties to accumulate bullion and protect domestic industries, using trade policies as tools for national economic power.^[13] By the 19th century, as the Industrial Revolution expanded mass production, pricing strategies began formalizing in retail contexts, with psychological pricing tactics—such as odd-even endings like $0.99—originating in the late 1800s through U.S. newspaper circulation wars, where publishers like those at the Chicago Daily News undercut competitors to appear cheaper.^[14] The term "price point" first appeared in 1894.^[15] The 20th century saw related pricing concepts gain theoretical rigor through economic thought, particularly Alfred Marshall's Principles of Economics (1890), which portrayed prices as equilibrium points on supply and demand curves, serving as critical market signals for resource allocation.^[16] Post-World War II mass production and rising consumerism integrated strategic pricing into marketing literature, emphasizing accessible levels for broad audiences amid economic expansion.^[17] In the 1980s, early digital experiments with electronic data interchange and bulletin board systems enabled initial pricing adjustments in business-to-business transactions, foreshadowing e-commerce's dynamic capabilities.^[18] Over time, pricing theory evolved from the cost-plus models prevalent in industrial-era manufacturing—where prices were markups over production costs—to dynamic pricing in consumer-driven economies, reflecting real-time demand fluctuations and behavioral insights.^[17]

Characteristics

Key Features

Price points exhibit a dual nature in terms of stability and flexibility, serving as fixed reference values in standardized pricing environments while allowing for adjustments in interactive settings. In product catalogs and published price lists, price points function as stable anchors that provide consistent benchmarks for consumers across transactions, ensuring predictability in retail and wholesale contexts. Conversely, in negotiation-based exchanges such as business-to-business deals or custom sales, price points demonstrate flexibility, where initial figures can be modified based on volume, terms, or buyer-seller dynamics without altering the core structure of the pricing framework.^[19] Visibility and communication represent core structural traits of price points, as they are prominently displayed in various media to convey essential transaction information. Price points appear explicitly on product labels, packaging, and shelf tags in physical retail settings, enabling quick assessment by shoppers. In advertising materials like brochures and digital banners, they are highlighted to denote availability and accessibility, while in service-oriented contexts such as restaurant menus, price points are integrated alongside descriptions to facilitate decision-making. This presentation format underscores their role in shaping immediate perceptions of affordability and alignment with consumer expectations.^[20] Granularity refers to the level of precision in price point expression, which varies to support market segmentation and consumer targeting. Price points can be set at coarse levels, such as whole dollars (e.g., $10), for high-volume or entry-level items where broad appeal is prioritized, or at finer increments involving cents (e.g., $9.99) to delineate subtle differences in perceived tiers. This variation in decimal places allows for segmentation, where precise endings signal distinct value propositions within product lines, as observed in retail displays and online listings. Empirical studies on pricing formats highlight how such granular adjustments, particularly odd-ending conventions, are prevalent in consumer goods to reflect nuanced positioning without implying causal mechanisms.^[21] Universality denotes the broad applicability of price points across diverse asset types, encompassing both physical and intangible offerings. They apply equally to tangible goods like apparel and electronics, where fixed or listed prices guide primary sales, and to intangible services such as software subscriptions or consulting, which often feature tiered points based on usage or duration. In resale markets, price points retain transferability, manifesting as secondary valuations that build on original figures, as seen in platforms for used vehicles or luxury items, ensuring continuity in market liquidity. This inherent adaptability underscores their structural role in facilitating exchanges irrespective of the underlying good's form.^[20]

Measurement and Analysis

Price elasticity serves as a primary quantitative metric for evaluating price points, quantifying the responsiveness of demand to changes in price at specific levels. It is calculated as the percentage change in quantity demanded divided by the percentage change in price, often using the formula E_d = \frac{\% \Delta Q}{\% \Delta P}, where a value greater than 1 indicates elastic demand and less than 1 indicates inelastic demand.^[22] At particular price points, elasticity can vary along the demand curve, becoming more elastic at higher prices where consumers are more sensitive to increases.^[23] Price thresholds, representing the boundaries where consumer willingness to purchase shifts, are commonly calculated through consumer surveys such as the Gabor-Granger method, which tests acceptance rates at incremental price levels to estimate revenue-maximizing points.^[24] Similarly, the Van Westendorp price sensitivity meter survey identifies acceptable price ranges by asking respondents to indicate prices that are "too cheap," "bargain," "expensive," and "too expensive," allowing analysts to derive optimal thresholds via intersection points of cumulative distributions.^[25] Analytical frameworks for price point assessment include adaptations of break-even analysis tailored to specific prices, where the break-even quantity is computed as fixed costs divided by the contribution margin per unit at that price, i.e., Q_{BE} = \frac{\text{Fixed Costs}}{P - \text{Variable Cost per Unit}}, enabling evaluation of revenue coverage at discrete points rather than averages.^[26] Histograms provide a visual framework for mapping price distributions in market datasets, binning observed prices to reveal frequency patterns, skewness, and clusters that highlight prevalent or sensitive points in competitive landscapes.^[27] Econometric models, particularly regression analysis, are essential tools for assessing price point sensitivity, with log-log regression models estimating elasticity coefficients from historical sales data where \ln Q = \beta_0 + \beta_1 \ln P + \epsilon, and \beta_1 represents the elasticity at varying points.^[28] A foundational equation for price point optimization is total revenue R = P \times Q, where quantity Q is derived from the demand curve function at price P, such as a linear demand Q = a - bP, to identify points maximizing R.^[29] Market research techniques like conjoint analysis serve as key data sources for pinpointing optimal price points, presenting respondents with product profiles varying in attributes including price to model trade-offs and utilities, from which part-worth values and willingness-to-pay curves are derived to simulate demand at specific levels.^[30] This method excels in isolating price's relative importance against other features, yielding simulated market shares for testing price scenarios.^[31]

Economic Causes

Supply and Demand Dynamics

In market economics, price points emerge from the interaction of supply and demand forces, where the demand curve illustrates consumers' willingness to pay for varying quantities of a good or service. The demand curve slopes downward, reflecting the law of demand: as the price increases, the quantity demanded decreases, often clustering around specific price levels where consumer valuations are concentrated due to heterogeneous willingness to pay.^[32] Consumer surplus, defined as the difference between what consumers are willing to pay and the actual price paid, further underscores these dynamics by measuring the net benefit at a given price point along the demand curve.^[33] On the supply side, production scaling influences viable price points through changes in cost structures that affect the supply curve's position. As output increases, economies of scale often reduce average and marginal costs, shifting the supply curve rightward and supporting lower equilibrium prices for higher quantities.^[34] This scaling effect determines the feasible price levels at which producers can profitably supply goods without delving into firm-specific cost breakdowns. Market equilibrium establishes the natural price point where the supply and demand curves intersect, known as the clearing price that balances quantities supplied and demanded. At this point, there are no shortages or surpluses, and the price stabilizes as the value where market forces align. Disruptions, such as supply shortages from external shocks, shift the supply curve leftward, elevating the equilibrium price point to restore balance.^[35] The basic model of this equilibrium is captured by the condition where quantity supplied equals quantity demanded, yielding the equilibrium price P^* as a function of that intersection:

P^* = f(Q_s = Q_d)

Here, P^* represents the price point that clears the market, derived from solving the supply and demand equations simultaneously.^[36]

Cost Structures

Cost structures play a pivotal role in determining feasible price points by establishing the internal financial thresholds that firms must meet to achieve profitability. Fixed costs, which remain constant regardless of production volume, such as research and development (R&D) expenditures or facility leases, impose a minimum price floor because they must be recovered across all units sold. For instance, in manufacturing, fixed costs like plant depreciation set a baseline that influences the lowest viable price point to avoid losses.^[37] Variable costs, which fluctuate directly with output levels—such as raw materials or direct labor—directly affect profit margins by varying the per-unit cost of production. These costs necessitate pricing adjustments to maintain desired margins; for example, a rise in material prices can squeeze margins unless offset by higher prices or efficiency gains. In contrast to fixed costs, variable costs allow for more flexible pricing as production scales, but they require careful monitoring to ensure prices cover incremental expenses.^[37] The interplay of fixed and variable costs is formalized in break-even pricing, which calculates the minimum price point required to cover all costs at a given quantity Q. The formula is:

P = \frac{FC + (VC \times Q)}{Q}

where P is the break-even price, FC represents total fixed costs, and VC is the variable cost per unit. This simplifies to P = \frac{FC}{Q} + VC, highlighting how fixed costs dilute per unit as volume increases, allowing lower prices at higher scales, while variable costs form the irreducible base. Firms use this to set initial price points, ensuring revenue equals total costs before targeting profits.^[38] In multi-product firms, cost allocation methods distribute shared overhead costs—such as utilities or administrative expenses—across product lines, leading to differentiated price points based on resource usage. Common approaches include activity-based costing (ABC), which assigns overhead proportional to activities like machine hours or setup times, or the step-down method, which sequentially allocates service department costs. For example, under ABC, a firm might allocate higher overhead to complex products requiring more quality inspections, resulting in elevated price points for those items to reflect true costs, whereas simpler products receive lower allocations and thus more competitive pricing. Inaccurate allocation can distort price points, potentially underpricing high-overhead products and eroding overall profitability.^[39] Inflation and input cost volatility further necessitate dynamic adjustments to price points, particularly in commodity-dependent industries where raw material prices fluctuate sharply. Rising input costs, such as those driven by energy inflation, compel firms to increase prices to preserve margins; for instance, in agriculture, fertilizer and fuel costs often constitute 20-30% of total production costs for crops like corn and wheat, so surges in these prices, linked to oil volatility, significantly raise overall production costs and prompt price hikes.^[40] Similarly, in the coffee industry, a 1% increase in commodity input costs typically passes through to retail prices by about one-third, allowing manufacturers to adjust price points amid volatile green coffee bean prices influenced by weather and global supply disruptions. These adjustments ensure cost recovery but must balance against demand elasticity to avoid volume losses.^[41]

Strategic Applications

Psychological Pricing Techniques

Psychological pricing techniques leverage cognitive biases to influence consumer perceptions of value at specific price points, often making products appear more affordable or desirable without altering the underlying cost. These methods exploit how consumers process numerical information, leading to non-rational decision-making that favors certain pricing structures over others. Key tactics include charm pricing, prestige pricing, decoy effects, and anchoring, each targeting distinct aspects of mental shortcuts in evaluation. Charm pricing, also known as odd-even pricing, involves setting prices just below a round number, such as $9.99 instead of $10, to capitalize on the left-digit bias where consumers disproportionately focus on the leftmost digit and perceive the price as closer to the lower round number. This technique creates an illusion of a bargain by triggering incomplete left-to-right price scanning, resulting in underestimation of the actual value. A seminal analysis of retail advertisements revealed that 9-ending prices are overrepresented compared to other digits, supporting two psychological mechanisms: perception as discounted round numbers and cognitive encoding errors during processing.^[42] A meta-analysis of 69 studies confirmed that just-below prices enhance purchase intentions (Hedges' g = 0.13) and improve price image (g = 0.28).^[43] In contrast, prestige pricing employs round numbers, like $1000, for luxury goods to convey exclusivity and superior quality, aligning with consumer associations of even pricing with high-end status rather than discounts. This approach signals sophistication and avoids the bargain connotation of odd endings, appealing to buyers seeking symbolic value over savings. Empirical evidence from consumer perception studies indicates that even prices are rated higher in quality and luxury attributes for premium items, such as designer products, compared to odd endings (F(1, 1207) = 4.87, p < 0.05).^[44] Analysis of luxury handbag and apparel pricing further shows that while odd prices appear in about 15-35% of cases, round structures dominate in high-prestige segments to reinforce brand signaling.^[45] The decoy effect introduces an asymmetrically dominated option—a third price point inferior to the target but comparable to a competitor—to shift preferences toward the desired higher-priced alternative by making it seem like a better value. For instance, offering small ($2), medium ($5), and large ($6) sizes where the medium acts as a decoy can boost uptake of the large, as the decoy highlights the target's advantages without directly competing. This violation of choice regularity was first demonstrated in foundational experiments where adding such alternatives increased selection of the dominating option by altering perceived similarities and trade-offs.^[46] Anchoring establishes an initial high price point as a reference that biases subsequent evaluations, making later offers appear more reasonable even if they remain elevated. Consumers adjust insufficiently from this anchor, leading to higher willingness to pay for the target product. Originating from heuristics in numerical judgment, this effect causes systematic overestimation when the anchor is high, as seen in pricing scenarios where an initial premium listing elevates perceived value of mid-tier options.^[47] Experimental studies confirm anchoring influences price estimates, with higher initial figures increasing final bids by anchoring consumer expectations.^[48]

Oligopoly and Competitive Pricing

In oligopolistic markets, characterized by a small number of interdependent firms, price points often exhibit stability due to strategic interactions among competitors. Price leadership emerges as a key mechanism, where a dominant firm sets a price point and rivals follow to avoid disruptive competition. This model, formalized in empirical studies of industries like beer, posits that the leader proposes a markup over competitive levels, and followers accommodate by matching, thereby sustaining higher prices across the market.^[49] Similarly, the kinked demand curve model explains price rigidity: if a firm raises its price above the prevailing point, rivals do not follow, leading to elastic demand and lost market share; conversely, a price cut prompts rivals to match, resulting in inelastic demand with minimal sales gain. This discontinuity at the kink stabilizes prices around the current equilibrium, as originally theorized by Sweezy. Collusive pricing in oligopolies frequently occurs through tacit agreements, where firms coordinate price points implicitly to avert price wars and maintain supracompetitive levels. In the U.S. airline industry, multimarket contact—where airlines overlap on multiple routes—facilitates such collusion by linking incentives across markets, reducing pairwise price differences by 3.5%–5.3% per 10% increase in contact and elevating average fares, such as the observed $264 benchmark.^[50] These patterns, evident in data from 1993–2016, demonstrate how airlines sustain uniform ticket price points, like economy fares on overlapping routes, without explicit cartels, though code-share agreements further dampen price variability by 1.5%–3.4%.^[51] Game theory provides a framework for analyzing these pricing dynamics, particularly through Nash equilibrium in non-cooperative games. In oligopoly pricing models like Bertrand competition, firms set prices simultaneously, with each selecting a best-response strategy given rivals' actions; the Nash equilibrium occurs where no firm benefits from unilateral deviation, often resulting in prices above marginal cost due to product differentiation. Reaction functions capture this interdependence, expressed as P_i = f(P_j, c_i), where P_i is firm i's optimal price, P_j is rival j's price, and c_i are firm i's costs, intersecting at equilibrium to stabilize price points.^[52] Barriers to entry, such as high capital requirements and economies of scale, reinforce price stability in oligopolies by deterring new entrants, allowing incumbents to sustain points above competitive levels without erosion from increased supply. In models like Cournot oligopoly, these barriers limit firm numbers, enabling prices like $18 per unit versus a competitive $7, as firms anticipate rivals' responses and avoid aggressive undercutting. This entrenchment of market power ensures persistent supracompetitive pricing, as seen in concentrated sectors where entry threats are minimal.^[53]

Modern Examples

Retail and Consumer Goods

In retail and consumer goods, price points serve as critical levers for driving volume sales in physical stores, often employing charm pricing tactics where items end just below round numbers to exploit consumer perceptions of value. For instance, supermarket staples like rotisserie chickens are commonly priced at $4.99 at chains such as Costco and BJ's, a strategy that persists even amid inflation to maintain affordability and boost impulse buys.^[54] This approach leverages left-digit bias, where consumers perceive a $4.99 price as substantially lower than $5.00—equivalent to a 20-cent rather than 1-cent increase—leading to higher demand elasticity at these thresholds across 3,500 supermarket products in U.S. chains.^[55] In clothing retail, tiered price points structure offerings to cater to varying budgets, with entry-level items frequently set at $19.99 to signal accessibility while anchoring higher tiers for premium lines. Apparel retailers like Target use this model through collaborations, such as Levi’s Signature or Mossimo lines priced in the $19.99 range for basic apparel, differentiating them from upscale national brands and encouraging cross-tier exploration in-store.^[56]^[57] Such tiering, often following a "good-better-best" framework, positions entry-level points to capture price-sensitive shoppers without eroding margins on elevated options.^[58] Seasonal adjustments in retail involve temporarily lowering price points during holidays to stimulate demand peaks. These promotions, peaking around Christmas, shift points downward on high-volume goods—such as electronics—to clear inventory and capitalize on festive spending, though they vary by retailer format with fulfillment-by-seller models offering deeper cuts.^[59] Empirical analysis of seasonal demand confirms that such price reductions during peaks like holidays counteract supply constraints and enhance short-term sales volume. In 2025, overall U.S. holiday retail sales are projected to grow by 2.9% to 3.4%.^[60] A prominent case study is Walmart's everyday low pricing (EDLP) strategy, which maintains consistent price points year-round to build customer loyalty and avoid promotional volatility. Introduced by founder Sam Walton in the 1970s, EDLP focuses on volume through supply chain efficiencies like cross-docking and direct vendor negotiations, enabling sustained low prices without frequent markdowns.^[61] This approach propelled Walmart's sales from $1.24 billion in 1970 to $681 billion in fiscal year 2025, with historical profits growing at a 17.82% annual rate through 2021 by fostering repeat visits and reducing advertising needs.^[62]^[63] By the early 1980s, it positioned Walmart as the most efficient U.S. discount retailer, offsetting low margins with high turnover.^[61] Price point clustering, particularly at 99-endings, significantly impacts sales in physical retail by amplifying perceived savings, which in turn influences average basket size through encouraged add-on purchases. Studies of U.S. supermarket scanner data show that 41% of prices cluster at 99-endings, driving a sawtooth demand pattern where sales drop sharply at round numbers, potentially increasing basket sizes by 1-4% via psychological anchoring that prompts bundling.^[55] In apparel and grocery contexts, this clustering boosts overall transaction volume by up to 8% compared to even pricing, as consumers perceive clustered low points as indicative of broader value, leading to larger hauls in-store.^[64]

Digital and Service Industries

In digital and service industries, price points are characterized by their flexibility and data-driven nature, often leveraging algorithms to respond to real-time market conditions, user behavior, and competitive landscapes rather than fixed costs associated with physical goods. These sectors emphasize intangible offerings like software, streaming, and cloud services, where pricing strategies aim to maximize accessibility while capturing value through personalization and scalability. Unlike traditional retail, price points here frequently incorporate zero or low entry barriers to build user bases, followed by tiered escalations or dynamic adjustments to optimize revenue. E-commerce platforms exemplify dynamic pricing through algorithmic adjustments that vary price points based on factors such as demand, inventory, competitor actions, and individual user data. Amazon, for instance, employs sophisticated AI-driven systems to update prices multiple times daily for millions of products, incorporating personalized elements like past purchase history or browsing patterns to tailor offers, often ending in .99 to leverage psychological appeal. This approach can increase seller revenue by up to 25% by ensuring competitiveness without manual intervention.^[65] Such strategies highlight how digital marketplaces use machine learning to create fluid price points that adapt instantaneously, differing from static retail pricing. Subscription models in services like video streaming rely on tiered price points to segment users by needs and willingness to pay, providing clear value ladders from basic to premium access. Netflix offers three main plans as of November 2025: the Standard with Ads tier at $7.99 per month for ad-supported viewing on two devices; the ad-free Standard plan at $17.99 per month supporting 1080p streaming and downloads on two devices; and the Premium plan at $24.99 per month, enabling four simultaneous 4K streams and additional features like spatial audio. These tiers encourage upgrades by gating higher-quality experiences behind incremental price points, with extra member add-ons at $6.99-$8.99 monthly to monetize shared accounts while maintaining core affordability. This structure balances broad adoption with revenue growth, as evidenced by Netflix's evolution from a single flat rate to multifaceted options. Freemium strategies introduce a zero price point as an entry hook, allowing users to access core functionalities for free before encountering upsell opportunities at defined premium thresholds, fostering viral growth and conversion in software-as-a-service (SaaS) environments. Dropbox pioneered this model by offering 2 GB of free cloud storage to individuals, prompting upgrades to paid plans starting at around $10 monthly for additional space and features, which propelled its user base from zero to 4 million in 15 months through referral incentives. Similarly, Spotify provides ad-supported free listening with limited skips, converting users to premium subscriptions at $10.99 monthly for offline access and ad-free playback, contributing to approximately 88% of its €15.6 billion revenue in 2024 from paid tiers despite a large free user cohort.^[66] These examples demonstrate how freemium price points reduce acquisition costs while leveraging network effects for long-term monetization. Global variations in digital services arise from currency conversions and localized price points to account for economic disparities, ensuring equitable accessibility across regions without eroding perceived value. In app stores like Apple's, developers set a base price in one currency (e.g., USD), which the platform automatically converts to 43 other currencies using real-time exchange rates from financial providers, generating up to 800 localized tiers that incorporate taxes and regional conventions. For instance, a $0.99 U.S. app might equate to ¥120 in Japan or €0.99 in the Eurozone, with options for manual overrides to align with local purchasing power. This system supports sales in 175 storefronts, adapting price points dynamically to fluctuations in exchange rates and regulations, as seen in periodic updates by Apple to reflect global economic shifts.^[67]

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Total costs include both fixed costs and variable costs. Fixed costs, or overhead expenses, are costs that a company must pay regardless of its level of ...15.2 Factors That Affect... · The Economy And Government... · Product CostsMissing: impact | Show results with:impact
[40]
Breakeven Selling Price | Ag Decision Maker
It tells you the minimum price you can sell your product for and still cover your costs. ... A key concept in this formula is the fixed cost per unit of sales.
[41]
What Is Cost Allocation? Definition, Methods, and Benefits | NetSuite
Aug 18, 2025 · Cost allocation is the process of identifying, aggregating, and assigning indirect costs to specific departments, projects, activities, or ...
[42]
[PDF] 1 Explaining Agricultural Commodity Price Increases
The increase in oil prices and the related increases in prices of fertilizer, chemicals and transportation have increased the cost of production, which ...
[43]
[PDF] Cost Pass-Through in the U.S. Coffee Industry - USDA ERS
A rich data set of coffee prices and costs was used to determine to what extent changes in commodity costs affect manufacturer and retail prices. On average, a ...
[44]
Patterns of Rightmost Digits Used in Advertised Prices
Abstract. Analysis of the rightmost digits of selling prices in a sample of retail price advertisements confirmed past findings indicating the overrepresen.
[45]
A meta‐analysis on the effects of just‐below versus round prices
Apr 19, 2023 · The introduction illustrates pricing effects on the main outcome, consumers' purchase decisions, and on the three process-oriented outcomes: ...
[46]
[PDF] The effect of price-ending on luxury and necessity
Moreover, firms do seem to set higher prices with round numbers, especially within product categories where it is most likely that they are using price to.
[47]
[PDF] The not-so-odd couple: Odd pricing in a luxury context - HAL-SHS
Dec 27, 2021 · Two large samples of prices indicate that odd prices (i.e., prices just below a round number, for example €1,495 vs. €1,500) are used in the ...
[48]
Adding Asymmetrically Dominated Alternatives: Violations of ...
Joel Huber and John W. Payne are Associate Professors and Christopher Puto is a doctoral student, all at the Fuqua School of Business, Duke University, Durham, ...Missing: decoy effect
[49]
Judgment under Uncertainty: Heuristics and Biases - Science
Judgment under Uncertainty: Heuristics and Biases: Biases in judgments reveal some heuristics of thinking under uncertainty. Amos Tversky and Daniel Kahneman ...Missing: price | Show results with:price
[50]
An Experimental Study on Anchoring Effect of Consumers' Price ...
This article uses experimental research to explore the existence and influencing factors of anchoring effect when consumers judge and estimate the price of a ...Theoretical Background... · Experimental Design · Conclusion and SuggestionsMissing: seminal | Show results with:seminal
[51]
Oligopolistic Price Leadership and Mergers: The United States Beer ...
Article Information. Abstract. We study a repeated game of price leadership in which a firm proposes supermarkups over Bertrand prices to a coalition of rivals.
[52]
Collusive pricing patterns in the US airline industry - ScienceDirect
Collusion can lead oligopolistic firms to achieve monopolistic outcomes, leading to reduced and inefficient equilibrium output, higher prices, and lower ...
[53]
[PDF] Collusive pricing patterns in the US airline industry
Aug 7, 2018 · Similarly, if code-share agreements facilitate collusion, pair-wise differences in prices between partner airlines should be smaller. The ...
[54]
18. Models of Oligopoly: Cournot, Bertrand, and Stackelberg
A Nash equilibrium is a correspondence of best response functions, which is the same as a crossing of the reaction curves. ( A − c 3 B , A − c 3 B ) .
[55]
Chapter 5. Monopolistic Competition and Oligopoly
Each firm chooses the optimal, profit-maximizing output level given the other firm's output. This will result in a Nash Equilibrium, since each firm is holding ...
[56]
Inflation is raising prices on almost everything, except rotisserie ...
Jun 7, 2022 · In the case of stores such as BJ's and Costco, that's the beloved $4.99 rotisserie chicken.
[57]
https://www.researchgate.net/publication/235287096_An_investigation_of_competitive_pricing_among_apparel_retailers_and_brands
[58]
Articles | The Business of Cozy | Idaho State University
Feb 7, 2025 · This means customers will see the left most number first also known as a left-digit bias to determine if the price is good enough to purchase ...Missing: studies | Show results with:studies
[59]
An investigation of competitive pricing among apparel retailers and ...
Aug 10, 2025 · The paper analyzes the impact of price competition on apparel retailers and brands, and further examines price tiers as a competitive strategy.
[60]
The Good-Better-Best Approach to Pricing - Harvard Business Review
As a starting point—before conducting customer research—many companies estimate that 10% to 20% of revenue will come from Good, 25% to 50% from Better, and 30% ...
[61]
An Empirical Study of Holiday Season Discounts - Sage Journals
For example, Cavallo (2017) collected data from 56 dual-channel retailers in 10 coun- tries and reported that 72% of the retailers charged the same prices ...
[62]
[PDF] Why Do Retail Prices Fall During Seasonal Demand Peaks?*
Abstract. Examining widely-sold products across dozens of categories in a national scanner database, we find seasonality in demand is large, pervasive, ...
[63]
[PDF] Business Model Evaluation: Quantifying Walmart's Sources of ...
Under Sam Walton (1972-1988), Walmart deepened its policy of everyday low prices. (EDLP), which led to negative output price variation. These were somewhat ...
[64]
[PDF] A Case Study based on Walmart's Triumphs - EconStor
Apr 27, 2022 · Particularly, the research on Walmart has shown that a low-price policy (EDLP) strategy, streamlined supply chain management by constructing ...
[65]
The Widespread Use of Odd Pricing in the Retail Sector
An analysis of 840 advertisements revealed that odd prices, in particular prices ending in the digit 9, clearly outnumbered all other price endings.