<p>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.</p>

<p>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.</p>

CC BY-SA 3.0
2015-12-02T16:29:47.310Z
Are you buying or selling? Is there a demand function?
Giskard
CC BY-SA 3.0
2015-12-02T16:56:38.940Z
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.
YKY
CC BY-SA 3.0
2015-12-02T17:02:41.840Z
There is a limit of potentially available units to sell though.
YKY
CC BY-SA 3.0
2015-12-02T20:50:53.357Z
You can look at the economic order quantity model ( http://www.springer.com/cda/content/document/cda_downloaddocument/9780387244921-c1.pdf?SGWID=0-0-45-830013-p52114613 ). 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.
VicAche
CC BY-SA 3.0
2015-12-02T20:56:17.603Z
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.
VicAche
CC BY-SA 3.0
2015-12-03T13:11:51.967Z
Thanks, I will look into it. It is B2B. Basically I am selling views from unique visitors on my resource. It is highly targeted audience and requires registration. At the moment we are talking thousands views per month. And the market cap (the amount of specialists in my country) would be tens of thouthands, but definitely less then 100k.
YKY
<mathematical-economics><data-request><price-theory>
Are there any models which allow to calculate a discount?
YKY
# Are there any models which allow to calculate a discount?

(Asked by: username_0 on 2015-12-02)

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.

**Tags:** mathematical-economics, data-request, price-theory

> **Comments:**
> **username_1**: Are you buying or selling? Is there a demand function?  
> **username_0**: 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.  
> **username_0**: There is a limit of potentially available units to sell though.  
> **username_2**: You can look at the economic order quantity model ( http://www.springer.com/cda/content/document/cda_downloaddocument/9780387244921-c1.pdf?SGWID=0-0-45-830013-p52114613 ). 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.  
> **username_2**: 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.  
> **username_0**: Thanks, I will look into it. It is B2B. Basically I am selling views from unique visitors on my resource. It is highly targeted audience and requires registration. At the moment we are talking thousands views per month. And the market cap (the amount of specialists in my country) would be tens of thouthands, but definitely less then 100k.  

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## 0 answers

