Solved: Re: Pricing analysis, elasticity charts

chemicalab · Posted 03-04-2014 07:43 AM

Hi all,

I am trying to understand the logic of optimizing price and how the methodology if any works.

I have my Q as Y and for X variables i have price and some types of promotion.

1. Which type of regression should i run in order to get my coeff for price?

2. How will i get the elasticity from that?

3. How can i use the outputs of the regression to create charts so i can find the optimal price which maximizes my revenue?

If there is any complete paper which can demonstrate thoroughly how to move along in analytics like that please share.

Thank you in advance

lryan · Posted 03-05-2014 12:58 PM

Thanks for your question. Generally SAS/ETS procedures are used for elasticity calculations. Here are some resouces, including a paper called Price and Cross Price Elasticity Estimation using SAS.

http://support.sas.com/rnd/app/examples/ets/elasticity

http://support.sas.com/rnd/app/examples/ets/simpelast/sas.htm

http://support.sas.com/resources/papers/proceedings13/425-2013.pdf

View solution in original post

lryan · Posted 03-05-2014 12:58 PM

Thanks for your question. Generally SAS/ETS procedures are used for elasticity calculations. Here are some resouces, including a paper called Price and Cross Price Elasticity Estimation using SAS.

http://support.sas.com/rnd/app/examples/ets/elasticity

http://support.sas.com/rnd/app/examples/ets/simpelast/sas.htm

http://support.sas.com/resources/papers/proceedings13/425-2013.pdf

chemicalab · Posted 03-11-2014 11:02 AM

Thank you very much for the information