All problems

Pricing

Two firms set a price on the same grid in the same period, each seeing the other's last move and not this one. Returns the price to set, the profit at it, and how both change with your inputs.

Result

solving

Solving…

Profit at every price on the grid

The price ladder

Rival's price

What moves it

Rival unit costPriceProfit
Solving…

Every row is a separate solve with only this input changed. Rows that return a different recommendation are marked.

Inputs

Logit price coefficient. Higher means buyers switch harder for the same 10c.
Difference in logit quality. Zero means the two products are interchangeable at equal prices.
Private label, a different pack size, or leaving with neither. Sets where the outside option sits.
How exactly each firm optimises: near zero is close to random, high is close to exact best response. Scales with your profit units.
9 levels on the grid.

In Python

sq.PricingProblem(costs=[1.00, 1.05], grid=(1.09, 1.89, 0.10), demand=sq.LogitDemand(3.6, [5.94, 5.94], market_size=400), precision=1.5).solve() returns the solution this page is rendering at its defaults — the quality terms are the outside option price times the price coefficient. See the docs for LinearDemand and CustomDemand.