Heuristic pricing rules not requiring knowledge of the price response function

Abstract Heuristic rules are appropriate, if a decision maker wants to set the price of new product or product, whose past variation is low, and budget limitations prevent use marketing experiments customer surveys. Whereas such not guaranteed provide optimal price, generated profits should be as close possible their values. We investigate eleven pricing that do require knows response function its parameters. consider monopolistic market situations, in which sales depend on respective only. A Monte Carlo simulation more comprehensive than extant attempts found literature, serves evaluate these rules. The best performing either hold changes between periods constant make them dependent previous absolute difference. These also outperform purely random setting, we benchmark. On other hand, based arc elasticities loglinear approximation prices, turn out even worse setting. In conclusion, discuss how heuristic may extended deal with line pricing, additional variables (e.g., advertising, promotion, force) duopolistic situation.