Competition Buzz: Pricing Policy – A New Methodology Based on Cost-Competitive Structure of the Company

By:Martín Alberto Rodríguez Brindis

This paper presents a theoretical review of the different approaches used by companies to set price of their products, showing the scope and limitations of each. It also presents a new methodology in pricing policy based on cost and competition, having in mind the whole cost structure of the company versus the competition prices in order to estimate and suggest a price. This is done using a weighing scheme that allows us to assign an appropriate weight to the main competitors in the target market of the company and a weight to the cost structure of the firm.

Full Content: SSRN

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