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Re:Dynamic Pricing: Let your prices rise or fall until you m... by RiderOfGiraffes on Saturday November 21, 2009 @05:42AM (#954413)
Related: http://news.ycombinator.com/item?id=488663

If you do use dynamic pricing and you measure things carefully you can compute/deduce the price-demand function. It's not a straight line, as most people would intuit and that article assumes for simplicity, but the analysis in that article can be applied to non-linear systems. Dynamic pricing allows you to start that analysis.

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