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Pricing Analytics
Pricing Analytics
Pricing Analytics
In Part (c), it is assumed that the utility is dependent on the Margin bonus received. So, keeping the
utility at the previous value of 38.38 in the regression equation, “Utility = 124.123-0.0016*Margin-
Bonus”.
Varying the Sales quota and Bonus as integer multiples, the values (Sales = 1600000, Bonus-12000)
nearest to the utility were the new values to be used.
Ancillary revenue is revenue that is derived from goods or services other than a company's primary
product offering. Examples include concessions at sporting events, baggage handling or seat
selection revenue received by airlines, restaurant revenue received by hotel owners, and car-wash
services sold by gas stations.
Game theory is the study of mathematical models of strategic interaction among rational decision-
makers. It has applications in all fields of social science, as well as in logic, systems science and
computer science.
The prisoner's dilemma is a paradox in decision analysis in which two individuals acting in their own
self-interests do not produce the optimal outcome. The typical prisoner's dilemma is set up in such a
way that both parties choose to protect themselves at the expense of the other participant.