ARBUS302 Lecture Notes - Lecture 13: Oligopoly, Insulin
10 Apr 2015
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Identifying pricing constraints: demand for the product class, product, and brand, # of potential buyers, newness of the product: stage in the product life cycle, the earlier in the life cycle the higher the price can be charged, charge more in the introductory stage (if you start low, you could be stuck there, single product versus a product line, single products have greater price flexibility, cost of producing and marketing the product, revenues must be greater than costs, cost of changing prices and the time period they apply, how many people need to be informed, how long before the price change is valid, type of competitive markets, pure monopoly: single producer markets (can charge more set your own price, oligopoly: markets with few producers, monopolistic competition: markets with differentiated products, pure competition: markets with many buyers and sellers and identical products (the market sets the price for you, competitor"s prices, know the competitors present and anticipate future prices.
