March 25, 2006Teck H. Ho I. Economic and Behavioral Foundations of Pricing II. Innovative Pricing Concepts and Tools III. Internet Pricing Models Lowest-Price.

Slides:

Advertisements

Similar presentations

Digital Market Simulations Joe Bailey, University of Maryland Chris Dellarocas, Boston University Special thanks to Il-Horn Hann, University of Maryland.

Advertisements

Cambridge Software / Pricing Bundle

Transfer Pricing Managerial Accounting David Fender Midterm 1

Market-Based Management and Financial Performance Chapter Sixteen M arket-Based Management, 4th edition.

Chapter 11.  Monopolistic competition is a market structure in which:  There are a large number of firms  The products produced by the different firms.

MICROECONOMICS Review for Exam Three (Chapters ) Fall 2014.

Pricing Strategies for Firms with Market Power

March 25, 2006Teck Ho Overview of Experiment 2 Markets, A and B Each Market lasts for 6 rounds Each group plays 3 times in Market A and 3 times in Market.

Relevant Costing for Managerial Decisions

Competing For Advantage

Chapter 8 Stock Valuation. Copyright ©2014 Pearson Education, Inc. All rights reserved.8-2 Valuing a Company and Its Future Value of a stock depends upon.

1 Teck-Hua Ho April 11, 2006 A Taxonomy of Ascending Bid Auctions Is Auction’s Duration/Deadline Fixed? Buyers Place a Bid By YesNo Automatic Bidding Straight.

1 Teck-Hua Ho Apr 29, 2006 I. Economic and Behavioral Foundations of Pricing II. Innovative Pricing Concepts and Tools III. Internet Pricing Models Takeaways.

1 Teck-Hua Ho April 29, 2005 I. Economic and Behavioral Foundations of Pricing II. Innovative Pricing Concepts and Tools III. Internet Pricing Models Sample.

1 Teck-Hua Ho April 15, 2006 A Taxonomy of Ascending Bid Auctions Is Auction’s Duration/Deadline Fixed? Buyers Place a Bid By YesNo Automatic Bidding Straight.

1 Teck-Hua Ho April 4, 2006 Internet Pricing Models I. Economic and Behavioral Foundations of Pricing II. Innovative Pricing Concepts and Tools III. Internet.

Pricing Decisions EMBA 5411 Budgeting and Pricing.

Today I will: Learn the role value plays in pricing decisions So I can: Explain the goal of pricing I will know I’m successful when: I see the value of.

1 Teck-Hua Ho Pricing Policy March I. Economic and Behavioral Foundations of Pricing II. Innovative Pricing Concepts and Tools III. Internet Pricing.

1 Teck H. Ho October 7, 2003 Takeaways I. Economic and Behavioral Foundations of Pricing II. Power Pricing Concepts.

DePaul Bears Try Your Luck!. Why buy this product? Approximately 1,000,000 cell phone users Approximately 2,000,000 or more people play the lottery New.

1 Teck-Hua Ho April 8, 2006 Internet Pricing Models I. Economic and Behavioral Foundations of Pricing II. Innovative Pricing Concepts and Tools III. Internet.

1 Teck-Hua Ho April 13, 2006 Auction Principles I. Economic and Behavioral Foundations of Pricing II. Innovative Pricing Concepts and Tools III. Internet.

1 Oligopoly. 2 By the end of this Section, you should be able to: Describe the characteristics of an oligopoly Describe the characteristics of an oligopoly.

Cost Behavior and Cost-Volume-Profit Analysis

1 ĐẠI HỌC HOA SEN Khoa Kinh tế Thương mại. 2 KHOA KINH TẾ THƯƠNG MẠI FINANCIAL MANAGEMENT ThS. Nguyễn Tường Minh

Segment Reporting and Transfer Pricing

Price = Sacrifice BenefitsSacrifice NBC_bottled_water_vs_tap384K_Stream.wmv.

ECONOMICS FOR MANAGERS

MANUFACTURING COMPANY: COST-VOLUME-PROFIT PLANNING AND ANALYSIS

AP Economics October 21, Finish Unit II Exam Review 2.Begin Unit 3: Theory of the Firm 3.Lesson 3-1: Introduction to Market Structures w/Video 4.Return.

MANAGERIAL ECONOMICS 11th Edition

Cost Behavior Cost Volume Profit Analysis Chapter M3.

Cost, supply, and strategy Paul C. Godfrey Mark H. Hansen Marriott School of Management.

PRICING CONCEPTS FOR ESTABLISHING VALUE

Oligopoly.  A market structure in which a small number of firms compete with each other,  The quantity that a firm sells depends on the firm’s price.

Using the Web-Based Training Tool MyFloridaMarketPlace.

Module 7: Cost Behavior & Cost- Volume- Profit Analysis ACG 2071 Created by: M. Mari Fall

Lecture 4 Strategic Interaction Game Theory Pricing in Imperfectly Competitive markets.

Market Analysis CHAPTER 6 BBUSS 2403 BUSINESS PLANNING 3-1.

Micro Chapter 11 Price-Searcher Markets with High Entry Barriers.

DEVELOPING A BUSINESS PLAN:

Objectives: Recognize the role value plays in pricing decisions Explain the goal of pricing See the value of Pricing as one of the key components of the.

1 CHAPTER 15 SHORT-TERM PLANNING DECISIONS. 2 Chapter Overview  How do relevant costs and revenues contribute to sound decision making?  What type of.

Lecture 3 Cost-Volume-Profit Analysis. Contribution Margin The Basic Profit Equation Break-even Analysis Solving for targeted profits.

1 Agribusiness library LESSON : Applying Trading Techniques.

15-1 Economics: Theory Through Applications This work is licensed under the Creative Commons Attribution-Noncommercial-Share Alike 3.0 Unported.

PRICING – CHAPTER 29 MARKETING What is price? THE VALUE PLACED ON A GOOD OR SERVICE CAN BE MONETARY ($5.50) OR NON-MONETARY (GIFTS)

NS4054 Fall Term 2015 Types of Competition. Spectrum of Competition 2.

Firms in Perfectly Competitive Markets. A. Many buyers and sellers B. The goods are the same C. Buyers and sellers have a negligible impact on the market.

THE FIVE-FORCES MODEL OF COMPETITION

Free Online Sweepstakes Sites

6/23/2016Senior Seminar1 Markets, Competition and Efficiency Competition Commission of India Delhi, January 7, 2010.

MANAGERIAL ECONOMICS 12th Edition

NS4960 Spring Term 2017 Markets and Competition

MANAGERIAL ECONOMICS 12th Edition

Should Managers Use Team-Based Contests?

Auctions and Competitive Bidding

DePaul Bears Try Your Luck!.

AMIS 310 Foundations of Accounting

Setting Up Your Account.

a market for oranges overview: each round overview: transacting

9Serious games. Seriously fun.

NS3040 Fall Term 2018 Types of Competition

Economics Chapter 5: Supply.

Economic Systems SSEF4 Market Economy Answers 3 Questions

Understanding Supply What is the law of supply?

Standard: Students will examine and analyze economic concepts such as supply, so that they may understand the production, distribution, and consumption.

The Perfectly Competitive Firm

Lesson 15-3 Decisions That Affect Net Income

Presentation transcript:

March 25, 2006Teck H. Ho I. Economic and Behavioral Foundations of Pricing II. Innovative Pricing Concepts and Tools III. Internet Pricing Models Lowest-Price Guarantee

March 25, 2006Teck H. Ho Overview of Experiment  2 Markets, B and M  Each Market lasts for 12 rounds  Each group plays 2 times in Market B and 2 times in Market M  Each group is matched with another group only once  Each market has two firms competing  The key difference is that the 2 firms in Market M offer lowest-price guarantees and the 2 firms in Market B do not offer such guarantees

March 25, 2006Teck H. Ho Market B: How Prices Determine Profits

March 25, 2006Teck H. Ho Market M: How Prices Determine Profits

March 25, 2006Teck H. Ho Deciding the Winner Each group’s total earnings is the sum of its earnings in all decision rounds The group who has the highest total earnings will win a prize of $40 (Ho & Ho Foundation) + $5 / Group = $100

March 25, 2006Teck H. Ho Simple Rules to Follow  In each decision round, you will be given 4 minutes to make your decision--a prompt will appear when the time limit expires  Do not click on the BACK button on the browser to return to a previous page--make sure the value you entered in the decision box is correct before clicking on the CONTINUE button.  Clicking on the BACK button to enter a new value will not work and may cause the system to behave erratically

March 25, 2006Teck H. Ho URL Link:  If you are an observer, clicking on the CONTINUE button right away

March 25, 2006Teck H. Ho Three Potential Goals of Lowest-Price Guarantee  Protect market share (and customer margin from complementary products!)  Reduce or postpone price search  Reduce price competition (  higher prices)

March 25, 2006Teck H. Ho Ho’s Diagram: Market B (without lowest price guarantee) Contribution (a) Contribution Before Price Change Variable costs (b) Sales Volume Contribution After Price Change Sales Volume Sales Volume ?? Variable costs (b) Unaffected Contribution (a) Additional Variable Costs (e) Contribution Lost Due to Price (c) Contribution Gained Due to Volume (f) CM1 P1 VC P2 S1 2

March 25, 2006Teck H. Ho Ho’s Diagram: Market M (with lowest price guarantee) Contribution (a) Contribution Before Price Change Variable costs (b) Sales Volume Contribution After Price Change Sales Volume Sales Volume ?? Variable costs (b) Unaffected Contribution (a) Additional Variable Costs (e) Contribution Lost Due to Price (c) Contribution Gained Due to Volume (f) CM1 P1 VC P2 S1 X 2

March 25, 2006Teck H. Ho Predictions by Game Theory “A Theory of Lowest Price Guarantees” by Teck Ho and Noah Lim, 2006