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Managerial Economics and Strategy, 2/e
book

Managerial Economics and Strategy, 2/e

by Jeffrey M. Perloff, James A. Brander
February 2016
Beginner to intermediate content levelBeginner to intermediate
500 pages
33h 40m
English
Pearson
Content preview from Managerial Economics and Strategy, 2/e

10.1 Conditions for Price Discrimination

We start by studying the most common form of nonuniform pricing, price discrimination, where a firm charges various consumers different prices for a good.2

Why Price Discrimination Pays

For almost any good or service, some consumers are willing to pay more than others. A firm that sets a single price faces a trade-off between charging consumers with a high willingness to pay a high price and charging a low enough price to sell to other customers with a lower willingness to pay. As a result, a single-price firm sets an intermediate price. By price discriminating, ...

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Publisher Resources

ISBN: 9780134472553