New tools for corporate planners

In 1960 I approached a Gulf vice president in charge of marketing to service stations in four states to cooperate in a study of pricing. His reply was quick and honest: “I don't know how I do what I do, and I don't think you can find out. But I will be happy to cooperate.” Within six months, with his help, I was able to construct a pricing model. If we knew his facts and used the model, we could predict with almost perfect accuracy what price he would set. Further, his intuitive procedures were highly imaginative, and we doubted that any economist could improve them.