As you can see, the relationship between price change and pressure factors is linear, with approximately 0.1*(U - D1 - D2) determining the magnitude of the change. In other words, if U is 0.9, D1 is 0.4, and D2 is 0.4, then price will increase by 1% on the next drop, as long as there are no ideas sitting on the market.
Thursday, October 11, 2007
What moves idea prices?
Here's a sample from a few industries I track, taken over about a 3-day period:

As you can see, the relationship between price change and pressure factors is linear, with approximately 0.1*(U - D1 - D2) determining the magnitude of the change. In other words, if U is 0.9, D1 is 0.4, and D2 is 0.4, then price will increase by 1% on the next drop, as long as there are no ideas sitting on the market.
As you can see, the relationship between price change and pressure factors is linear, with approximately 0.1*(U - D1 - D2) determining the magnitude of the change. In other words, if U is 0.9, D1 is 0.4, and D2 is 0.4, then price will increase by 1% on the next drop, as long as there are no ideas sitting on the market.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment