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