Pricing Discount Question
Was wondering if there are any theories in regards to something I am encountering.
For example, there is a 100 of a product that sells for $100, and that item is discounted until the full supply runs out. So, if on the first day, 0 people buy the item, the price goes down to $99. Conversely, if 50 people buy the item on day 1, it may increase price to $110. If this price is too high, it will drop.
What I am trying to determine is the following:
What sales were "lost" revenue. IE- Someone bought at $99 but more than likely would have purchased at $100
vs.
What sales were "gained" sales: IE - Someone bought at $95, but would have considered $100 too expensive.
I'm not sure if such a theory exists, but I would assume it would have to do with the quantity sold at each price, which I obviously have the information on.
Please let me know if anyone has thoughts on this.