Pricing rules, no individual stores create their own prices. Everything is a suggested retail price (SRP) that most retailers follow. These SRPs are usually set up through some mark-up rule. A certain department or product line should generate this amount of profit and this percentage is multiplied by the cost of the product. There might be some demand estimation in the determination of the mark-up level, but at the store level and the individual product level no one worries about demand and only considers the cost.
The prevalence of mark-up rules help demonstrate how competitive United States markets are.
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While you are mostly right, this is very quickly changing. Check out the assocaited press article about companies like SAP and Oracle are now selling software that uses scanner data to do demand estimation and make pricing recommendations. Check out the article below
http://apnews.excite.com/article/20070429/D8OQEJL80.html
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