## Pricing analysis, elasticity charts

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Posts: 126

# Pricing analysis, elasticity charts

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.

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‎03-05-2014 12:58 PM
SAS Employee
Posts: 22

## Re: Pricing analysis, elasticity charts

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

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Solution
‎03-05-2014 12:58 PM
SAS Employee
Posts: 22

## Re: Pricing analysis, elasticity charts

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

Frequent Contributor
Posts: 126

## Re: Pricing analysis, elasticity charts

Thank you very much for the information

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