The Seductive Power of Price

Hermann Simon

Chapter 9 in Many Worlds, One Life, 2021, pp 157-175 from Springer

Abstract: Abstract Warren Buffet once said that pricing power is the most important determinant of a company’s value. Already in my childhood, I had visceral first-hand experiences with the power of price. When our hogs were ready for slaughter, my father would bring them to the local wholesale market, but he had no influence on the price. And I didn’t like that the price was often lousy. Pricing eventually became my vocation. I started with theory, then practice, followed by the psychology of price and even its philosophy. The Romans already knew that price equals value. They have the same word “pretium” for both. Price is the most powerful instrument in marketing and competition. It drives profit like no other factor. But it is also dangerous. It can ignite price wars. And it is now conquering even wider realms of society, with uncertain consequences. It is likely that no one else has written more about pricing than I have.

Date: 2021
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DOI: 10.1007/978-3-030-60758-6_9

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