Theoretical Price Optimization Models

Theoretical Price Optimization Models are tools used by businesses to determine the best price for their products or services. These models analyze various factors, such as consumer demand, competitor pricing, and production costs, to predict how price changes might affect sales and profits. By applying mathematical formulas and algorithms, companies can identify the optimal price point that maximizes revenue while remaining attractive to customers. Essentially, these models help businesses make informed pricing decisions based on data and economic theory, aiming to find a balance between profitability and market competitiveness.