PRICING PROCESS MODELLING OF COMMUNICATIONS SERVICES

Abstract

This article deals with initial assumptions and construction possibilities of optimal price in pricing process of communications services. Its construction and usage supposes certain initial conditions, in communications services sector Ramsey optimal pricing is especially discussed, its application is thus preferred before other methods, on the opposite it is more complicated and more demanding in some own input variables. In very close relation with Ramsey approach to optimal pricing the rule of inverse elasticity is. Its application in communications services sector can run into some problems related to real mutual relations of particular products. Considering to initial price level and other conditions, it is necessary by change management to focuse on profit targets, which need not to be in compliance with social utility in certain region with consider to its largeness. That is why authors suggest to add rule of profit maximization to Ramsey pricing application.