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

2. Chapter 11 of Baye Pricing Strategies for Firms with Market Power

3. 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

4. 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?

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

6. 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?

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