THE PROFITABILITY THRESHOLD IN PRICING POLICY UNDER CONDITIONS OF UNCERTAINTY (Preliminary Version)

This paper has as its aim consideration of the possibility of restructuring the profitability threshold model so as to allow its use as an auxiliary tool in pricing policy decisions. With this in mind, in the light of the limitations imposed by the traditional approach to profitability thresholds, it proposes the application of fuzzy set theory so as to develop a "fuzzy threshold of profitability". This would incorporate variables which are of significance for decisions on pricing, such as potential demand, the cost of getting a new product into the market, and the costs of sales and distribution, together with possible interconnections between these variables