Project #$11-$ Chapter $11-$ Selecting a Pricing Strategy

Refer to Project #$10$ and assume all the details given remain in effect. You're coming up with a price for the new self$-$driving system for WAYMO.

There are numerous competitors working on a similar device, including the truck manufacturers $($Peterbilt$,$ Mack, Volvo, Kenworth, et al$).$ Given your head start, you belleve you'll have a $12-$to$18-$month window before a viable competitor enters the market with their own device. Once competitors do enter the market, however, they'll be formidable.

Would you recommend a penetration or skimming pricing strategy? Defend your recommendation.

Hint: You may want to take into account the experience curve effects detalled in Project #$10.$