Method and apparatus for determining prices that maximize revenue

For a product having a demand curve, a method for determining prices that maximize revenue comprising:

• performing a geometric calcuJation using a first price so as to determine a plurality of additional prices;
• determining geometric error associated with said first price and said additional prices;
• changing said first price when said first price does not minimize said geometric error;
• and
• performing said geometric calculation, determining said geometric error and changing said first price until a first price is found that minimizes said geometric error.

For a plurality of products having demand curves, a method for determining prices that maximize revenue for each of said products comprising:

• determining an initial price for each product by multiplying the cost of each product by a multiplier;
• determining additional prices that maximize revenue for each product;
• determining the total cost of said plurality of products;
• changing said multiplier when said total cost of said products is not equal to said budget;
• and
• continuing to perform said steps of determining an initial price, determining additional prices, determining the total cost, and changing said multiplier until said total cost of said products is near the amount of said budget.

In a computer system including a processor coupled to a bus, and a memory unit coupled to the bus for storing information, a computer-implemented method for determining prices that maximize revenue for a product having a demand curve comprising:

• performing a geometric calculation using a first price and using said demand curve so as to determine a plurality of additional prices;
• determining geometric error associated with said first price and said additional prices;
• changing said first price when said first price does not minimize said geometric error;
• and
• performing said geometric calculation, determining said geometric error and changing said first price until a first price and additional prices are found that minimize said geometric error.

A computer-readable storage medium storing instructions that, when executed by a computer, cause the computer to perform a method for determining prices that maximize revenue for a product having a demand curve comprising:

• performing a geometric calculation using a first price and using said demand curve so as to determine a plurality of additional prices;
• determining geometric error associated with said first price and said additional prices;
• changing said first price when said first price does not minimize said geometric error;
• and
• performing said geometric calculation, determining said geometric error and changing said first price until a first price and additional prices are found that minimize said geometric error.