Vatsa, PuneetMa, WanglinZhou, X2021-10-052021-09-282021-122021-09-220718-1876YA4IO (isidoc)https://hdl.handle.net/10182/14267Characterizing the demand curve of products is important for pricing them optimally. However, in deriving empirical demand curves, econometricians have to contend with identification issues. Furthermore, theoretical demand curves derived using standard economic theory are divorced from empirical realities: firms rarely have information on customers’ budget constraints; theoretical utility functions are seldom derived empirically. Recognizing these issues, we propose an experimental approach for determining a product’s demand curve and, in turn, its profit maximizing price in online environments. The proposed approach yields precise estimates and is quick and inexpensive to implement.pp.2571-2578en© 2021 by the authors. Licensee MDPI, Basel, Switzerland.digital productsexperimental analysispricing strategyprofit maximizationJournal Article10.3390/jtaer160701410718-1876ANZSRC::3801 Applied economicsANZSRC::380203 Economic models and forecastingANZSRC::350610 Pricing (incl. consumer value estimation)ANZSRC::3503 Business systems in contextANZSRC::3506 MarketingANZSRC::4609 Information systemshttps://creativecommons.org/licenses/by/4.0/Attribution