Abstract

GONZALEZ-BENITO, Óscar; MARTINEZ-RUIZ, María Pilar  and  MOLLA-DESCALS, Alejandro. Determination of Optimum Prices in the Commercial Distribution Sector in Spain: Application of an Asymetrical Competition Approach. Innovar [online]. 2011, vol.21, n.40, pp.53-66. ISSN 0121-5051.

Bearing in mind the importance of price decisions in retail commercial distribution, in this research a decision model to maximize prices in the short-term is proposed considering that optimal prices affect and retail margins maximize overall category profits. Three main aspects describe the proposal: (1) it is based on an overall store perspective; (2) it incorporates market share models with logical consistency; and (3) it includes the role of the competitive category structure through an explicit modelling of asymmetrical effects between brands. Additionally, the consequences of eluding the asymmetrical competitive structure are evaluated through an empirical application.

Keywords : Price optimization; intra-category competitive structure.

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