Econometric optimization engine

A preferred set of prices for a plurality of products, generally demand coefficients is provided. Cost data including activity-based costs is also received. A preferred set of prices that will provide a local optimum for the preferred set of prices which maximizes profit is then determined. In one embodiment, a sales model and a cost model are created. A plurality of rules is specified. The preferred set of prices is then determined based on the sales model, the cost model, and the plurality of rules.