Table 3From “What is price elasticity of demand?”
How should price elasticity be governed?
Table 3How should price elasticity be governed?
| Control point | Accountable role | Minimum record | Escalation |
|---|---|---|---|
| Definition and scope | Pricing owner | Net price, outcome unit, cohort, period, and comparison | Hold the estimate when any boundary is missing |
| Evidence approval | Finance reviewer | Source, method, sample or cohort, uncertainty, and falsifier | Reopen the analysis when the comparison cannot support the decision |
| Economic threshold | Commercial approver | Pre-declared contribution hurdle, price corridor, and stop rule | Escalate before approval when the scenario breaches the local rule |
| Post-change review | Outcome owner | Actual price, quantity, contribution, renewals or defection, and review date | Pause or revise the action when the observed path departs from the scenario |
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Pricing & revenue architecture
What is price elasticity of demand?
Price elasticity measures percentage quantity response to a percentage price change, revealing how pricing power shapes revenue and contribution margin.
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