Model building for pricing decision making in an uncertain environment

In this paper we focus on the representation and treatment of knowledge and data uncertainty within the context of an important practical problem, i.e. sales estimation as a function of price changes for a portfolio of goods or services. We discuss methods for interval and fuzzy estimation of the parameters of the sales-price response functions given the kinds of information usually available. The new approach is illustrated on an example of life insurance policy pricing.<<ETX>>