Threshold Price

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.
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References in periodicals archive ?
If you want to buy a new-build home using the Help to Buy scheme, the property purchase price cannot be more than the threshold price, which is currently PS200,000.
The letter also suggested that the committee may recommend that government decrease the threshold price of second tier tax and impose price reduction restriction as an immediate step.
The threshold price (the "Threshold Price") of the Notes will be set at a 16% premium to the initial price (the "Initial Price") of the Notes, which will equal the volume-weighted average price of one share of JPM common stock on the trading day immediately following April 18, 2018.
The threshold price of the Notes has been set at $128.73460, representing a 16% premium over the initial price of $110.9781, which equals the volume-weighted average price of one share of the common stock of JPMorgan Chase & Co.
Global Banking News-March 19, 2018--Deutsche sets threshold price and initial price for notes linked to Voya Financial stock
During the House committee on good government and public accountability hearing on the botched immunization program on Wednesday, found that the government bought the vaccine for $21 'societal price' instead of its $13 threshold price.
With demand actually increasing, and without a threshold price to encourage breeding, supply-side interventions are unlikely to be effective in protecting wild rhinos.
In theory, it should be possible to identify a threshold price level at which there is not enough new drilling to continue growing shale output.
If bidding reaches a to-be-determined threshold price, the agency would set aside up to 30 percent of the licenses for companies that don't currently hold a lot of nearby airwaves."
Oil prices remained above the threshold price of production for most projects, keeping increasing demand for oilfield goods and services steady.
Let the revenue's annual variance of an R&D project be [[sigma] = 0.20, risk free rate r = 0.10, information cast [[lambda].sub.P] = [[lambda].sub.F] = 0.02, dividend yield [delta] = 0.08, exponential decay rate [theta] = 0.05, probability of a Poisson event [xi] = 0.05, and R&D investment I = 100,000; through the derived equations above, we can obtain [[beta].sub.1] = 2.458, [[beta].sub.2] = -3.458, [[beta]'.sub.1] = 2.854, the [F.sub.1] threshold price [P.sup.*] = 30,345, the [F.sub.2] threshold price [P.sup.*] = 27,708, and, the most important, the option value [F.sub.1] = 68,585, and [F.sup.2] = 72,934.