BUS 207 Lecture Notes - Lecture 10: Reservation Price, Risk Neutral, English Auction

47 views8 pages

Document Summary

First degree p disc: when each customer is charged their max willingness to pay in order to capture all of the cs, only exists in theory, some examples come close to it though. If seller acts as monopolist, then we know the p is pm (where mr = mc) Tr = 1/200q2, mr = 1/100q: mr = mc, solve for q (cid:862)(cid:272)ost asso(cid:272)iated (cid:449)ith addi(cid:374)g e(cid:454)t(cid:396)a ___ is (cid:374)egligi(cid:271)le(cid:863) = (cid:374)o mc, u(cid:271)stitute i(cid:374)to p f(cid:859)(cid:374) to fi(cid:374)d p. If a heavy user of the thing, will want this pricing strategy: p disc = either pay heavy membership fee + light variable uses or heavy variable uses, e. g. gym membership (1-time fee) + variable fee per use. Information g: knowledge/information g = anything digitally-stored (music, databases, films, costs very little for producer to offe(cid:396) (cid:373)o(cid:396)e (cid:448)e(cid:396)sio(cid:374)s (cid:271)/(cid:272) the(cid:455)(cid:859)(cid:448)e al(cid:396)ead(cid:455) (cid:373)ade, create unique pricing problems, can offer different versions based on:

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents