Chapter 11 Pricing with Market Power
Chapter 11 Pricing with Market Power
Topics to be Discussed a Capturing Consumer Surplus ■ Price Discrimination a Intertemporal Price Discrimination and Peak-Load Pricing Chapter 1 Slide 2
Chapter 11 Slide 2 Topics to be Discussed ◼ Capturing Consumer Surplus ◼ Price Discrimination ◼ Intertemporal Price Discrimination and Peak-Load Pricing
Topics to be Discussed ■ The Two- Part tariff Bundling a Advertising Chapter 11 Slide 3
Chapter 11 Slide 3 Topics to be Discussed ◼ The Two-Part Tariff ◼ Bundling ◼ Advertising
Introduction a Pricing without market power(perfect competition) is determined by market supply and demand a The individual producer must be able to forecast the market and then concentrate on managing production (cost) to maximize profits Chapter 1 Slide 4
Chapter 11 Slide 4 Introduction ◼ Pricing without market power (perfect competition) is determined by market supply and demand. ◼ The individual producer must be able to forecast the market and then concentrate on managing production (cost) to maximize profits
Introduction a Pricing with market power(imperfect competition requires the individual producer to know much more about the characteristics of demand as well as manage production Chapter 11 Slide 5
Chapter 11 Slide 5 Introduction ◼ Pricing with market power (imperfect competition) requires the individual producer to know much more about the characteristics of demand as well as manage production