Patent ID: 6963854

Claim:
A target pricing system used in a computer for obtaining an optimum value, the target pricing system resident on one or more host processors in connection with one or more data stores, the target pricing system comprising: a product model that prices using a computer a plurality of values using stored price data and estimates costs for each of the values using stored cost data; a competitor net price model that calculates using a computer an equivalent competitor net price; and a market response model that calculates using a computer the probability of winning with each of the values as a function of price, wherein the market response model uses an equation: probability ⁢ ⁢ of ⁢ ⁢ winning = 1 1 + ∑ j ∈ J ⁢ ⅇ k j + m j wherein, for J competitors, k j is a sum of price-independent terms for competitor j and m j is a sum of price-dependent terms for the competitor j.