Analyzing the price skimming strategy for new product pricing

This article presents a new model for pricing a new product considering a skimming pricing strategy in the presence of competition. We consider two periods for price setting, including skimming and an economy period. The problem is to decide on skimming as well as economy price, in order to maximize total prot. The derived model is a non-linear programming model and we have analyzed the structure and properties of an optimal solution to develop a solution method. Analytical results, as well as managerial insights, are presented by mathematical and numerical analyses