New pricing method boosts profits and market stability in digital economy.
The article explores how to set prices without following traditional depreciation methods. By using value-based management concepts, the researchers compared different depreciation methods in a hypothetical company. They found that in stable demand, prices based on annuity depreciation were more consistent with prices from DCF models. When fixed assets can be valued using market prices, DCF models are preferred for pricing. Otherwise, annuity depreciation should be used for pricing in each planning period.