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The elasticity reading sheet
The first output is not a coefficient. It is a list of conditions that make the coefficient interpretable.
| Question before the increase | Record this | If the answer is missing |
|---|---|---|
| What is the comparison price? | Last paid price, list price and last approved discount | Do not call the result elasticity yet |
| Who selected the account? | Inbound, rep-qualified, partner, deal desk or renewal-only | Separate selection from willingness to pay |
| What changed besides price? | Scope, service level, term, implementation or sponsor | Price is not the only treatment |
| What was the customer's recent experience? | Satisfaction signal, escalation, service incident or expansion | Treat the coefficient as conditional |
| What would falsify the story? | A matched account with the same change and a different outcome | Pre-specify the comparison before reading the result |
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Reference & Evidence
Source: Author's worksheet. The example row is illustrative and carries no empirical coefficient.
Related exhibits
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Four reasons the same increase can mean different things
From the essay Price elasticity is not a property of your market
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The revealed-preference choice record
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The price elasticity commercial decision matrix
From the essay What is price elasticity of demand?