The past decade has seen a virtual explosion of information about customers and their preferences. This information potentially allows companies to increase their revenues, in particular since modern technology enables price changes to be effected at minimal cost. At the same time, companies...

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...

We develop and implement a Bayesian Semi-parametric model of demand under inter-product competition that enables us to assess the respective contributions of branding hierarchy and inter-product similarity to explaining and predicting demand. To incorporate branding hierarchy effects, we use...