When doing revenue optimization we need to take into account the price elasticity of demand. Not sure if this publisher has a good handle on that.
References
- George Bittlingmayer, “The Elasticity of Demand for Books, Resale Price Maintenance and the Lerner Index“, Journal of Institutional and Theoretical Economics (JITE) / Zeitschrift für die gesamte Staatswissenschaft, Vol. 148, No. 4 (December 1992), pp. 588-606
- http://yetanothermathprogrammingconsultant.blogspot.com/2016/09/getting-rid-of-fly-ash_12.html: another example where we use a price elasticity to optimize a firm’s profit.
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