I want to progressively calculate a discount based on the amount of product sold. Are there any models which allow to take into account different type of products and can calculate the discounts based on the target profit? I am using logistic growth function at the moment, but maybe there is better solution lurking around? Where should I look.

I know R and Python and some math, but don't know much about economics. So if anyone can point me to the right direction it would be great.

  • $\begingroup$ Are you buying or selling? Is there a demand function? $\endgroup$ – Giskard Dec 2 '15 at 16:29
  • $\begingroup$ I am selling. Currently there is no demand function and I am dropping the price per item ~3 times when logistic function reaches its maximum. $\endgroup$ – YKY Dec 2 '15 at 16:56
  • $\begingroup$ There is a limit of potentially available units to sell though. $\endgroup$ – YKY Dec 2 '15 at 17:02
  • $\begingroup$ You can look at the economic order quantity model ( springer.com/cda/content/document/cda_downloaddocument/… ). This model is aimed at B to B businesses, from either a seller or a buyer perspective. If you make your (economic) requirements clearer, we could look for a more precise answer, but this is a simple and elegant model. $\endgroup$ – VicAche Dec 2 '15 at 20:50
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    $\begingroup$ In B to C businesses, I guess the tag should be "behavioral economics" rather than "mathematical economics", as discounts have a very important psychological impact on customers that should be rated against the cost of , for example, advertising to have the same effect on sales. $\endgroup$ – VicAche Dec 2 '15 at 20:56

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