Study Guide Week Twelve Welcome to EC 209: Managerial Economics- Group A By: Dr. Jacqueline Khorassani Study Guide Week Twelve

Chapter 11 of Baye Pricing Strategies for Firms with Market Power

Overview I. Basic Pricing Strategies II. Extracting Consumer Surplus Monopoly & Monopolistic Competition Cournot Oligopoly II. Extracting Consumer Surplus Price Discrimination  Two-Part Pricing Block Pricing  Commodity Bundling III. Pricing for Special Cost and Demand Structures Peak-Load Pricing  Price Matching Cross Subsidies  Brand Loyalty Transfer Pricing  Randomized Pricing IV. Pricing in Markets with Intense Price Competition

Standard Single Pricing Where does the price come from? Can you show the profit area graphically? Can you show the profits algebraically? How does MR relate to elasticity? Can you show the simple mark-up rule? What is the markup rule for Cournot oligopoly?

First-Degree, Second Degree and Third Degree Price What are they? How practical is it?

What is Two-Part Pricing? How does it work? What is Block Pricing? What is Commodity Bundling? What is Peak-Load Pricing? What are Cross-Subsidies? How do they work?

What is Double Marginalization? How does it work? What is the result? What is Transfer Pricing? What is Price Matching? What is Randomized Pricing?