M B A 8620 Lecture Notes - Lecture 7: Mylan, Epinephrine Autoinjector, Inverse Demand Function
29 Sep 2016
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Presentation #1: demand elasticities for google play and apple apps. Are free apps: most have ads, fewer options. Apple consumers are sensitive but less the google. Arc price elasticity: can be use after the fact by managers. Point elasticity: managers can use on a regular bases to forecast. 2 elasticity for apple: 1% change in price will change a 2% un qty demanded, when more screenshots more demand, people preferred apps with no ads in them. Google had under 2mm apps: elasticity of demand: -3. 7 for google play, why is it more elastic than apple. Since google has more apps demand is more elastic: apple iphone are 4 times more prone to install it in their ipad vs google play in their tablet from their android. Characteristics: single firm, very high entry barriers, high profitability. Virtual monopoly: 90% of the market, with small competitors.
