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- W2146838832 abstract "There is a widely held notion that as production costs decline with experience, prices should follow more or less in parallel. Although this notion has been an important factor in estimating experience curves and in formulating corporate strategies, we show that it is generally inconsistent with published multiperiod optimal pricing models. The paper then goes on to demonstrate that this apparent conflict can be reconciled by allowing the demand process to exhibit increasing price elasticity over time. Since this demand characteristic is very plausible for innovative products, we suggest it be incorporated into optimal pricing models." @default.
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- W2146838832 date "1986-12-01" @default.
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- W2146838832 title "Declining prices and optimality when costs follow an experience curve" @default.
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- W2146838832 doi "https://doi.org/10.1002/mde.4090070403" @default.
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