chapter_11 Pricing with Market Power 平狄克微观英文版教材.ppt

Chapter 11;Topics to be Discussed;Topics to be Discussed;Introduction;Introduction;Capturing Consumer Surplus;Capturing Consumer Surplus;Price Discrimination;P*;P*;Question Why would a producer have difficulty in achieving first-degree price discrimination? Answer 1) Too many customers (impractical) 2) Could not estimate the reservation price for each customer;Price Discrimination;Price Discrimination;First-Degree PriceDiscrimination in Practice;Second-Degree Price Discrimination;Second-Degree Price Discrimination;Price Discrimination;Price Discrimination;Price Discrimination;Price Discrimination;Price Discrimination;Price Discrimination;Price Discrimination;Price Discrimination;Price Discrimination;Price Discrimination;Third-Degree Price Discrimination;Third-Degree Price Discrimination;No Sales to Smaller Market;No Sales to Smaller Market;The Economics of Coupons and Rebates;Price Elasticities of Demand for Users Versus Nonusers of Coupons;Cat food -0.49 -1.13 Frozen entrée -0.60 -0.95 Gelatin -0.97 -1.25 Spaghetti sauce -1.65 -1.81 Crème rinse/conditioner -0.82 -1.12 Soup -1.05 -1.22 Hot dogs -0.59 -0.77;The Economics of Coupons and Rebates;The Economics of Coupons and Rebates;The Economics of Coupons and Rebates;Airline Fares;Elasticities of Demand for Air Travel;Airline Fares;Intertemporal PriceDiscrimination and Peak-Load Pricing;Separating the Market With Time Once this market has yielded a maximum profit, firms lower the price to appeal to a general market with a more elastic demand Paper back books Dollar Movies Discount computers;Intertemporal Price Discrimination;Demand for some products may peak at particular times. Rush hour traffic Electricity - late summer afternoons Ski resorts on weekends;Capacity restraints will also increase MC. Increased MR and MC would indicate a higher price.;MR is not equal for each market because one market does not impact the other market.;MR1;How to Price a Best Selling Novel;How to Price a Best Selling Novel;What Do Y