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Find equilibrium price

What is the best way to find a price with SMRT advanced module where Product A has the same share of choice as product B at varied prices.

There is a competitive set of products. I want to find out the added value of a new product B compared to product A.

So I introduce B and want to vary the price for B as long as it gets the same share as A. This price would then be the Value of B.
asked Sep 10, 2015 by anonymous

1 Answer

0 votes
This has to be done manually.  Keep changing price for product B until its share matches A.  Remember that you can interpolate between price levels you measured in your study so you can work this out to a high degree of precision in terms of price.  Also, remember that you can assign the price values to the levels so instead of specifying "1" to mean price 1, you could specify "125" dollars if you associated 125 dollars with level 1.  By assigning level values, you can then directly specify exactly the monetary value in the simulator rather than having to convert to level 1, level 1.1, etc.

To assign prices to level values within SMRT, click:

Market Simulator + Assign Level Values...
answered Sep 10, 2015 by Bryan Orme Platinum Sawtooth Software, Inc. (196,215 points)