Pricing models for multi-related products in a linear demand system

This paper discusses the possibility of establishing an optimal title pricing model. Itbegins with developing a stable pricing model by extending Hill's optimal conditions un-der the assumption of linear demand relationship. The model can be used to get the optimalprice mix directly when a system is given and the production costs are constants. In orderto solve the problems of a long-term pricing, the paper further develops a multi-stage dy-namic pricing model and the optimal conditions of such a controlling system. A calcula-tion program for the quantitative solution is given. It finally introduces an empirical casestudy which shows how the models established here can be used by enterprise in multi-product pricing decision-making.