英文--定价.pptVIP

* * Pricing policies: Introduction we’ve looked at firms charging a uniform, single price for all customers. In reality, firms with market power adopt a variety of pricing policies with a view to Increasing profits Softening competition (how?) Price discrimination: A practice of selling the same good at different prices to different customers Criteria（标准） for discrimination: location, age, income, etc. Condition for successful price discrimination: no arbitrage (buy at low price and sell at high price for pure gains) Lecture 10 * Examples of price discrimination Movie tickets (senior citizens discount, or Tuesday discount) Airline prices (weekend stay, 21-day advance purchase, etc.) Store brands (customer preference for brand) Nonlinear pricing for mobile phone, internet services, water, gas, electricity Home loan products, insurance policies, etc. Lecture 10 * Techniques of price discrimination Perfect price discrimination (one-to-one marketing) Ideal (for a seller) price discrimination based on consumers’ preferences with different prices charged to different customers according to their reservation price. When the first-degree price discrimination is not possible, sellers price-discriminate based on imperfect proxies (postcode, income, age, gender) of consumers’ reservation prices. Third degree price discrimination (segmented marketing or group pricing) Lecture 10 * Price discrimination: exercise There are 8 potential buyers (A, B, C,…, H) for a bottle of premium Yarra Valley Pinot Noir. Each buyer’s reservation price (or willingness to pay) is known to the seller, shown in the next slide. The constant marginal cost per bottle of wine is $28 to the seller. Let us ignore fixed cost. What are the profit-maximizing price and quantity if the same price has to be charged to all buyers? What if the seller can charge different prices to different buyers? Lecture 10 * Price discrimination: exercise Price represents buyers’ reservation price. For example, A’s r