prismodeller

Prismodeller is a term used in Danish-language business literature to describe analytical and mathematical models employed to set or analyze the prices of goods and services. The concept covers a range of approaches, from simple rule-based pricing to advanced optimization and machine-learning–driven methods. In practice, prismodeller are used by manufacturers, retailers, software firms, and service providers to balance revenue, demand, competition, and customer value.

Common types include cost-based pricing models, which determine price as a markup on cost; value-based pricing, which ties price to perceived customer value; dynamic pricing models, which adjust prices in real time in response to demand, supply, and market conditions; and price discrimination models, which segment customers and set different prices. Bundling and two-part tariff models, as well as revenue-management or yield-management models for capacity-constrained pricing, are also part of the toolkit.

Data and methods typically involve estimates of demand elasticity, cross-elasticities, and competitive reactions. Techniques used include econometric regression, conjoint analysis, machine learning, optimization, and simulation. These models rely on historical sales data, price experiments, and market intelligence to forecast outcomes and identify optimal pricing.

Applications span sectors such as e-commerce, retail, travel and hospitality, software-as-a-service, and industrial markets. Prismodeller support decisions on list prices, promotional discounts, subscription tiers, and bundled offers, contributing to revenue management and competitive positioning.

Note: In some contexts, the term may have other meanings in mathematics or education; the precise interpretation depends on discipline and country.