Threshold Price

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Threshold Price

The price that psychologically encourages a potential buyer to purchase a product. For example, a company may price a product at $19.99 because it finds that it begins to lose buyers at $20. This maximizes the company's revenue because it makes slightly less money from significantly more buyers.
References in periodicals archive ?
In practice, identifying threshold prices will be complicated.
In Europe we established intervention and threshold prices, providing a relatively narrow trading range, and commerce benefited from this, albeit at relatively high base prices.
6) For lease sales in 2004-2005, the threshold prices in late 2006 were $41.
Such thresholds establish a maximum price per barrel of oil or million Btu of natural gas where producers may receive royalty relief; above the threshold price, royalties must be paid.
Thus, the optimal strategy for these decisions takes the form of four threshold prices, which are determined by a number of parameters, including those reflecting the industry features and the status of timberland holding.
Changes in any of the related parameters will cause the operation decisions to be made at different threshold prices.
To look at how a change in market volatility will affect those threshold prices, suppose that the market volatility decreases by 5.
Reasonableness has come back to the antitrust laws, and in the consumer electronics industry, where sales training, industry marketing, and after-sales service are highly valued by manufacturers and reputable retailers, it makes perfect sense to consider these factors when evaluating a manufacturer's requirement that threshold prices be maintained.
Section 29 tax credits could also be reduced before expiration if the price of crude oil exceeds annually adjusted threshold prices and eliminated entirely above certain oil prices.