Optimal Differentiation Pricing Policy with Linear Demand Function

摘要

The main objective in any marketing effort is to consider the optimal conditions to maximize revenue and profit. The optimal market segmentation prici ng strategy is investigated under the assumption of an aggregate linear demand f unction. The optimal conditions to maximize revenue and profit, two closely corr elative problems, are obtained respectively. The differentiation pricing policy described here can be easily applied in practice. A numerical example is provide d which vividly illustrates the advantage of applying optimal policies.