Recent years have seen advances in research and management practice in the area of pricing, and particularly in dynamic pricing and revenue management. At the same time, researchers and managers have made dramatic improvements in production and supply chain management. The interactions between...

This research uses P&G's value pricing initiative as a context for testing the ability of a normative economic model to predict competitor and retailer response. We first estimate the response parameters of a demand function for each brand from the period before value pricing was initiated. We...