Dynamic Pricing and Revenue Management Lecture 3: Price Differentiation

Size: px
Start display at page:

Download "Dynamic Pricing and Revenue Management Lecture 3: Price Differentiation"

Transcription

1 Dynamic Pricing and Revenue Management Lecture 3: Price Differentiation Jian Yang Department of Management Science and Information Systems Business School, Rutgers University Newark, NJ Spring / 31

2 Price Differentiation Price differentiation refers to the practice of charging different prices to different customers, either for exactly the same good or for slight different versions of the same good. We use the term price differentiation rather than price discrimination which is more commonly used in the economics literature, in part to avoid the negative connotation associated with the latter. The art of price differentiation lies in finding a way to divide the market into different segments such that higher prices can be changed to the high-willingness-to-pay segments and lower prices to low-willingness-to-pay segments. There is a variety of ways, depending on the characteristics of the market, the competitive environment, and the character of the goods or services being sold. 2 / 31

3 The Economics of Price Differentiation One way to look at the price-response function d(p) = (10, p) + is that, 10,000 customers are willing to pay 0 or more, 5,000 customers are willing to pay $6.25 or more, 3,000 customers are willing to pay $8.75 or more, and 1,200 customers are willing to pay $11 or more. The marketing department might see an opportunity to improve profitability. There are 2,000 customers willing to pay $10 or more who are purchasing at $8.75. Also, 3,000 are willing to pay more than the production cost c = $5 but less than $8.75. What if the seller could determine the maximum amount that each customer would be willing to pay and could charge that amount to everyone willing to pay more than the cost $5? 3 / 31

4 More Speculation At the current optimal single price $8.75, total profit is (8.75 5) 3, 000 = $11, 250. If charging everyone the price he is willing to pay (third-degree price discrimination), total profit is 7.5 6, 000/2 = $22, 500. While it is unrealistic to capture the total potential, the sheer magnitude of potential gains means there is powerful motivation for sellers to tailor different prices to different buyers according to their willingness to pay. Suppose the market can be segmented into those willing to pay more than $7 and those willing to pay $7 or less. We have d 1 (p) = min{4, 400, (10, p) + }, d 2 (p) = (5, p) +. 4 / 31

5 Two-market Segmentation Suppose the seller can perfectly identify customer as belonging to one group or the other and then offer each customer the appropriate price, without any opportunity for resale or arbitrage between the two groups. For the above-seven segment, total contribution m 1 (p) = 4, 400(p 5) when 5 p 7 and m 1 (p) = (10, p)(p 5) when 7 p When maximizing m 1 (p), we find p 1 = $8.75 and m 1(p 1 ) = $11, 250. For the below-seven segment, total contribution m 2 (p) = (5, p)(p 5) when 5 p 7. When maximizing m 2 (p), we find p 2 = $6 and m 2(p 2 ) = $800. This $800 is extra from price differentiation; also, 800 more customers get to purchase. It is a win-win situation. 5 / 31

6 Limits to Price Differentiation Imperfect Segmentation. The brain-scan technology required to determine the precise willingness to pay of each customer has not yet been developed. Cannibalization. Under differential pricing, there is a powerful motivation for customers in high-price segments to find a way to pay the lower price. When 10% of above-seven customers are able to pay the low price $6, the benefit of price differentiation would be eliminated. Arbitrage. Price differentials create a strong incentive for third-party arbitrageurs to buy the product at the low price and resell to high willingness-to-pay customers below the market price, keeping the difference to themselves. 6 / 31

7 Tactics for Price Differentiation Price differentiation allows sellers to increase profitability by charging different prices to customers with different willingness to pay. Imperfect segmentation, cannibalization, or arbitrage can destroy or even reverse the benefits of price differentiation. Though with strong incentive to position and price their products differently, sellers need to plan and manage their pricing carefully. The tactics to achieve this include group pricing, channel pricing, regional pricing, couponing and self-selection, product versioning, time-based differentiation, and volume discounts. 7 / 31

8 Group Pricing Group pricing is the tactic of offering prices to different groups of customers for exactly the same product. Examples include: Student discounts, Senior citizen discounts, Ladies Night specials, Family specials, Discounts for favored customers, Favorable terms offered to large customers like Wal-Mart, Lower prices offered to government, educational, and nonprofit organizations. For group pricing to succeed, four criteria must hold: an unambiguous indicator of group membership (student ID), a strong correlation between group membership and price sensitivity, product or service not easily traded among purchasers, culturally and legally acceptable segmentation. 8 / 31

9 Group Pricing in Reality The criteria for group pricing are so stringent that its pure form rarely appears in direct consumer sales. It is more common in services. Services are often sold directly by the supplier so that Disneyworld, for example, can check a customer s age before selling a child s ticket. Many service, such as health care and haircuts, are intrinsically nontransferable, so arbitrage is not an issue. Pure group pricing is also common in business-to-business sales. Customized pricing in B2B sales is often combined with some form of product versioning, particularly in industries where individual orders are very complex and/or configurable. 9 / 31

10 Channel Pricing Channel pricing is the practice of selling the same product for different prices through different distribution channels. Here are some examples: Barnes and Noble sells books for different prices online than through its outlets. Special Web-only fares for airline tickets are available through the Internet but not travel agencies. Many fashion and home furnishing merchants offer lower prices through mail-order catalogs than retail outlets. Causes for channel pricing are differences in costs (selling via travel agencies is more costly than through a web site) and differences in price sensitivities (for personal loans, customers inquiring online are more price-sensitive than those contacting a call center). 10 / 31

11 Regional Pricing In certain places, McDonalds sells hamburgers for higher prices in wealthy neighborhoods than in poorer ones. A roundtrip New York-Tokyo ticket purchased in Japan will usually cost more than the same ticker purchased in the United States. A glass of beer costs more at an airport bar than at the corner bar. Price differentiation here is based on the supplier s desire to exploit differences in price sensitivity between locations. 11 / 31

12 Couponing and Self-selection Group pricing is both difficult because it requires customer categorization based on price sensitivity and unpopular because it often seems unfair to consumers. It is more convenient to differentiate prices in ways that allow customers to self-select. Both the list price and a discounted price are available to all customers, but it takes additional time, effort, of flexibility to obtain the discounted price. Examples: Retailers offer discount coupons through newspapers, direct mail, and magazines. Manufacturers offer mail-in rebates for purchases of a good. Movies theaters charge the lower prices for a weekday matinee than for a Saturday night show. Brand-name retailers such as Ralph Lauren and Gap operate outlet stores in somewhat out-of-the-way locations. 12 / 31

13 Product Versioning This practice can involve developing an inferior variant and /or superior variant of an existing product. For inferior goods, consider the following examples: Exxon/Mobil and Shell sell excess gasoline in bulk at low prices to so-called off-brand independent dealers who resell it under their own brands. A well-known premium wine producer sells some of its production under a different label at about half the price. Apple has its ipad Mini following the success of ipad. Complex application software packages such as supply chain or enterprise resource planning (ERP) software are often sold at different prices, depending on the number of features involved. 13 / 31

14 Superior Goods and Product Lines Examples of superior goods: Spendrup, Sweden s largest brewery, marketed its Old Gold as a premium brand and maintained a price 25% to 50% higher than its other brands, even the former did not stand out in comparative taste tests. Proctor-Silex priced its top model much differently than the next brand, exploiting the segment of the market that wants to buy the best, despite the cost. A product line is a series of similar products serving the same general market but sold at different prices. Dell PCs form a vertical product line, where each product has higher performance than the product just below it in the line. The QuickBook financial software come in different versions. 14 / 31

15 Product-line Pricing A hotel that charges more for an ocean-view room than a parking-lot-view room. Hertz one-day rental offers six different products at Seattle airport, ranging from economy rental to one involving a luxury car. For service company like Hertz, creation of a product line creates opportunities for upgrading. A rental car company or a cruise line has the ability to oversell lower-quality car types and upgrade customers into higher-quality types. Not only does this provide the company with greater flexibility to manage its inventory, but being upgraded is usually viewed favorably by customers. Product line has the advantage of being perceived to be fair by customers. 15 / 31

16 Time-based Differentiation Time-based differentiation is a common form a product versioning. Amazon offers 5- to 9-day Super-saver shipping free while charging $3.97 for standard shipping. Passenger airlines offer discount rates to customers who book a week or more prior to departure. Software- and hardware-support contracts charge more for two-hour response than for two-day response. Fashion goods cost more during the beginning of the season and are marked down toward the end of the season. Time-based differentiation plays a very important role at passenger airlines, hotels, and rental car companies, in which time of booking is used as an indicator of whether or not a potential customer is traveling for leisure or business. 16 / 31

17 Product Versioning or Group Pricing? Airline pricing like many successful examples of price differentiation includes elements of both group pricing and product versioning. The airlines consciously created restricted discounted fares as an inferior product. They did so, however, as a way to enable them to offer different fares to different customer groups: lower fares to leisure travelers and higher fares to business travelers. Pure group pricing is very difficult to pull off in consumer markets. In the absence of a clear marker to tell whether a particular customer is flying for business or pleasure, airlines rely on the very imperfect criterion of whether or not a customer can book early. Until recently, there has been no systematic way to sell to leisure customers without cannibalizing the full-fare business customers. 17 / 31

18 Volume Discounts Volume discount is a time-honored tactic. Buy more to save more is a common motto. A six-pack beer costs less than six times the cost of a single bottle. Larger boxes of laundry detergent cost less per ounce than smaller boxes. Verizon offers residential long-distance plans in which the cost per minute declines with the number of minutes. Volume discount is prevalent in wholesale and business-to-business selling too. There are many reasons why companies offer volume discounts: transaction or order costs, decreasing marginal utility, increasing price sensitivity, bargaining powers, and seller s risk aversion. 18 / 31

19 Transaction or Ordering Costs If there are substantial costs associated with fulfilling an order independent of size, the order cost per unit will decrease as the size of the order increases. It may make sense for the seller to charge a lower price per unit for larger orders. A software seller has a fixed cost of $1,000 per installation and a variable cost of $40 per user. His total cost for an installation with 10 users is $1,400 or $140/user, compared with a total cost of $5,000, or only $50/user, for an installation with 100 users. Even if large users and small users have the same price sensitivity, it will make sense to charge less per user to large users. 19 / 31

20 Decreasing Marginal Utility The marginal utility to a buyer often decreases as the number of units purchased increases. A hot and thirsty customer walking into a convenience store places more value on the first can of cold soft drink than she does on the second. A company wants to purchase copies of a financial analysis software package for its employees to use. There are 500 employees who would use the package and the value to the company for their access is uniformly distributed between 0 and $250 per year. The software vendor is essentially facing a demand curve of d(p) = 500 2p. The vendor can set a single annual license fee of $125 and sell 250 copies for total revenue of $31,250. However, if it licenses the first 250 copies for $125 each but drops the price to $75 for each additional sale, it will sell an additional 100 copies for an additional revenue of $7, / 31

21 Increasing Price Sensitivity and Other Factors Customers purchasing large amounts are often more price sensitive than those purchasing small amounts. A contractor who spends millions on galvanized pipe annually is much more likely to spend time and effort finding a good deal than a homeowner who is buying a length of pipe at the hardware store. Bargaining Power: A large corporation has stronger bargaining power than a small business in price negotiations. Risk Aversion: A seller may be willing to concede on price to surely sell off a large quantity of items, lest the current customer walks away with a small purchase, future demand does not pick up, and items rot in the warehouse. 21 / 31

22 Nonlinear Pricing Many schemes for volume discounting are grouped under the general category of nonlinear pricing, referring to the fact that total price paid is not a linear function of the number of units sold. Some discounting creates the undesirable situation where ordering more would cost less. This can be avoided by adopting incremental discounting wherein additional discounts are only applied to additional units. A common example is buy one, get the second at half price. Volume discounts can be based on total volume of business over some time period, rather than on size of a single order. This is often accomplished in consumer markets by frequent buyer schemes such as airlines frequent-flyer programs. In B2B sales, discounts are often based on sales volume in a quarter. 22 / 31

23 More on Volume Discounting Volume discounts provide opportunities for arbitrage. Thus, software companies often require users to register to receive future support and maintenance, in part to deny arbitrage opportunities. Sometimes it is hard to distinguish between volume discounting and oligopsony or monopsony the exercise of market power by purchasers so dominant that they represent a significant fraction of the entire market. Historically, the big three U.S. automakers could often dictate prices to some of their suppliers, since they were the only game in town. Branches of the U.S. government often require as terms of their procurement contracts that suppliers provide them most favored buyer status that is, they must sell at a price at least as low as the lowest price given to any other customer. 23 / 31

24 Independent Market Segmentation If market segments are independent (i.e., no cannibalization) and the seller faces no capacity constraints, then the seller simply needs to find the contribution-optimizing price for each segment. A device costs $235 when sold on Internet and $270 when sold through retail. Price elasticity is 2.5 for Internet customers and 2.2 for retail customers. Then the optimal price is (2.5/1.5) 235 = $392 for Internet sales and (2.2/1.2) 270 = $495 for retail sales. 24 / 31

25 Optimal Pricing with Arbitrage Regional pricing is subject to arbitrage whenever a product can be purchased in a low-price region and transported cheaply to be resold at a higher price elsewhere. For this reason, global companies often set price bands for various markets to avoid resales from low-price countries that would cannibalize sales in higher-price countries. A computer chip manufacturer finds that the contribution-maximizing prices for his chips are $2.54 in the United States and $2.43 in Brazil. However, if it costs $0.08 per unit to ship chips from Brazil to the United States, he will not be able to charge those prices due to the potential for arbitrage between the two countries. 25 / 31

26 Mathematical Formulation A manufacturer sells a common product in n different locations. The delivered cost in country i is c i and the price-response curve faced by the supplier in the country is d i ( ). The cost for an arbitrageur to transport the product from country i to country j is a ij. To avoid arbitrage, the key is to ensure p j p i + a ij for all (i, j)-pairs. To find optimal prices p i in regions i, we solve the following: max n i=1 (p i c i )d i (p i ) s.t. p j p i + a ij, i, j = 1, 2,..., n, i j, p i 0, i = 1, 2,..., n. 26 / 31

27 Optimal Pricing with Cannibalization Let α be the cannibalization fraction the portion of higher-willingness-to-pay customers masquerading as lower-willingness-to-pay customers, with α = 0 representing the case of perfect differentiation. For an earlier example, we have d 1 (p) = (1 α) min{4, 400, (10, p) + } and d 2 (p) = (5, p) + + 4, 400α. To find p 1 and p 2 that maximize total contribution, we solve the following: max (p 1 c)(1 α) min{4, 400, (10, p) + } +(p 2 c)[(5, p) + + 4, 400α] s.t. p 1, p 2 0, and p / 31

28 Morals from Cannibalization We find p 1 = 8.75 and p 2 = min{ α, 7}. As α increases, p 2 increases as well. This corresponds to intuition the more our low-price product is cannibalizing our high-price product, the higher we need to price the low-price product to maximize total contribution. As α increases, optimal total contribution deceases as more and more hight-w.t.p. customers are cannibalized by the lower price. At about α = 13%, total contribution is $11,250, the same achievable with no segmentation. Thus, even fairly low rates of cannibalization can outweigh the benefits of price differentiation. 28 / 31

29 Finding the Best Segmentation The seller might want to choose a particular willingness to pay v as the divide, so that he can offer one price p 1 to customers with w.p.t. above v and offer another price p 2 to those with w.p.t. below v. We write d 1 ( ; v) for the price-response curve of the first segment and d 2 ( ; v) for that of the second segment. For 0 v 12.5, d 1 (p; v) = max{10, v, (10, p) + }, d 2 (p; v) = (800v 800p) +. Under a fixed v, the seller s contribution is m (v) = max p1 v p 2 0{(p 1 c)d 1 (p 1 ; v) + (p 2 c)d 2 (p 2 ; v)}. The optimal segmentation occurs at v = $10, with p 1 (v ) = $10, p 2 (v ) = $7.5, and m (v ) = $15, / 31

30 Consumer Surplus Price differentiation can be good for sellers. But is it good for buyers? This practice can be viewed as unfair and hence unpopular among certain population. A differential pricing scheme that improves total consumer welfare is more defensible to both the public and potential regulators. The key concept is consumer surplus. The surplus of an individual consumer is the difference between his willingness to pay and the price at which he purchases, if he purchases, and is zero if he does not purchase. The total consumer surplus is the sum of individual surpluses. When there is a single price, consumer surplus is equal to the area of the section under the price-response curve above the sales price. 30 / 31

31 Price Differentiation and Consumer Welfare Under perfect differentiation, there will be zero consumer surplus. Price differentiation can be good for both seller and consumers. When there is only one price $8.75, seller s surplus is rectangle A 1 from 5 to 8.75 on price axis and from 0 to 3,000 on demand axis, and consumer surplus is triangle C 1 from 8.75 to 12.5 on price axis and from 0 to 3,000 on demand axis. When the seller charges $8.75 to those with w.p.t. above $7 and $6 to those with w.p.t. below $7, he will receive additional contribution in rectangle A 2 from 5 to 6 on price axis and from 4,400 to 5,200 on demand axis, and consumers will receive more surplus in triangle C 2 from 6 to 7 on price axis and from 4,400 to 5,200 on demand axis. Most schemes result in both winners and losers among consumers. 31 / 31

PRICING STRATEGIES. Sunde T.

PRICING STRATEGIES. Sunde T. PRICING STRATEGIES Economists use the term price discrimination to refer to situations where firms charge more complicated prices than simple linear prices. In this topic, you will be introduced to the

More information

Common in European countries government runs telephone, water, electric companies.

Common in European countries government runs telephone, water, electric companies. Public ownership Common in European countries government runs telephone, water, electric companies. US: Postal service. Because delivery of mail seems to be natural monopoly. Private ownership incentive

More information

LECTURE - 2 YIELD MANAGEMENT

LECTURE - 2 YIELD MANAGEMENT LECTURE - 2 YIELD MANAGEMENT Learning objective To demonstrate the applicability of yield management in services 8.5 Yield Management or Revenue Management Yield management is applied by service organizations

More information

Price Discrimination: Part 2. Sotiris Georganas

Price Discrimination: Part 2. Sotiris Georganas Price Discrimination: Part 2 Sotiris Georganas 1 More pricing techniques We will look at some further pricing techniques... 1. Non-linear pricing (2nd degree price discrimination) 2. Bundling 2 Non-linear

More information

Chapter 15: Pricing and the Revenue Management

Chapter 15: Pricing and the Revenue Management Chapter 15: Pricing and the Revenue Management 1 Outline The Role of RM (Revenue Management) in the SCs RM for Multiple Customer Segments RM for Perishable Assets RM for Seasonable Demand RM for Bulk and

More information

Figure 1, A Monopolistically Competitive Firm

Figure 1, A Monopolistically Competitive Firm The Digital Economist Lecture 9 Pricing Power and Price Discrimination Many firms have the ability to charge prices for their products consistent with their best interests even thought they may not be

More information

Lecture 9: Price Discrimination

Lecture 9: Price Discrimination Lecture 9: Price Discrimination EC 105. Industrial Organization. Fall 2011 Matt Shum HSS, California Institute of Technology September 9, 2011 September 9, 2011 1 / 23 Outline Outline 1 Perfect price discrimination

More information

Price Discrimination

Price Discrimination Discrimination A2 Micro Economics Tutor2u, November 2010 Key issues The meaning of price discrimination Conditions required for discrimination to occur Examples of price discrimination Economic efficiency

More information

ECON 600 Lecture 5: Market Structure - Monopoly. Monopoly: a firm that is the only seller of a good or service with no close substitutes.

ECON 600 Lecture 5: Market Structure - Monopoly. Monopoly: a firm that is the only seller of a good or service with no close substitutes. I. The Definition of Monopoly ECON 600 Lecture 5: Market Structure - Monopoly Monopoly: a firm that is the only seller of a good or service with no close substitutes. This definition is abstract, just

More information

2. Price Discrimination

2. Price Discrimination The theory of Industrial Organization Ph. D. Program in Law and Economics Session 5: Price Discrimination J. L. Moraga 2. Price Discrimination Practise of selling the same product to distinct consumers

More information

Conditions for Efficiency in Package Pricing

Conditions for Efficiency in Package Pricing Conditions for Efficiency in Package Pricing Babu Nahata Department of Economics University of Louisville Louisville, Kentucky 40292, USA. e-mail: nahata@louisville.edu and Serguei Kokovin and Evgeny Zhelobodko

More information

Wong 1. accessed 29 Nov 2010. 1 Malcolm Tatum, What is an Online Auction?, http://www.wisegeek.com/what-is-an-online-auction.htm,

Wong 1. accessed 29 Nov 2010. 1 Malcolm Tatum, What is an Online Auction?, http://www.wisegeek.com/what-is-an-online-auction.htm, Wong 1 Angel Hoi Ling Wong (UID: 303577059) Econ 106T Professor Board 2 December 2010 Priceline: Name Your Own Price Introduction Priceline.com ( Priceline ) is an e-commerce company that primarily provides

More information

Pricing with Perfect Competition. Business Economics Advanced Pricing Strategies. Pricing with Market Power. Markup Pricing

Pricing with Perfect Competition. Business Economics Advanced Pricing Strategies. Pricing with Market Power. Markup Pricing Business Economics Advanced Pricing Strategies Thomas & Maurice, Chapter 12 Herbert Stocker herbert.stocker@uibk.ac.at Institute of International Studies University of Ramkhamhaeng & Department of Economics

More information

SECOND-DEGREE PRICE DISCRIMINATION

SECOND-DEGREE PRICE DISCRIMINATION SECOND-DEGREE PRICE DISCRIMINATION FIRST Degree: The firm knows that it faces different individuals with different demand functions and furthermore the firm can tell who is who. In this case the firm extracts

More information

A Model for Optimal Pricing and Capacity Allocation for a Firm Facing Market Cannibalization

A Model for Optimal Pricing and Capacity Allocation for a Firm Facing Market Cannibalization Proceedings of the 2011 International Conference on Industrial Engineering and Operations Management Kuala Lumpur, Malaysia, January 22 24, 2011 A Model for Optimal Pricing and Capacity Allocation for

More information

Chapter 14 Monopoly. 14.1 Monopoly and How It Arises

Chapter 14 Monopoly. 14.1 Monopoly and How It Arises Chapter 14 Monopoly 14.1 Monopoly and How It Arises 1) A major characteristic of monopoly is A) a single seller of a product. B) multiple sellers of a product. C) two sellers of a product. D) a few sellers

More information

AIRLINE PRICING STRATEGIES IN EUROPEAN AIRLINE MARKET

AIRLINE PRICING STRATEGIES IN EUROPEAN AIRLINE MARKET AIRLINE PRICING STRATEGIES IN EUROPEAN AIRLINE MARKET Ľubomír Fedorco, Jakub Hospodka 1 Summary: The paper is focused on evaluating pricing strategies based on monitoring of air ticket prices in different

More information

Part IV. Pricing strategies and market segmentation

Part IV. Pricing strategies and market segmentation Part IV. Pricing strategies and market segmentation Chapter 9. Menu pricing Slides Industrial Organization: Markets and Strategies Paul Belleflamme and Martin Peitz Cambridge University Press 2010 Chapter

More information

3 Price Discrimination

3 Price Discrimination Joe Chen 26 3 Price Discrimination There is no universally accepted definition for price discrimination (PD). In most cases, you may consider PD as: producers sell two units of the same physical good at

More information

Chapter 14 Monopoly. 14.1 Monopoly and How It Arises

Chapter 14 Monopoly. 14.1 Monopoly and How It Arises Chapter 14 Monopoly 14.1 Monopoly and How It Arises 1) One of the requirements for a monopoly is that A) products are high priced. B) there are several close substitutes for the product. C) there is a

More information

1. Supply and demand are the most important concepts in economics.

1. Supply and demand are the most important concepts in economics. Page 1 1. Supply and demand are the most important concepts in economics. 2. Markets and Competition a. Market is a group of buyers and sellers of a particular good or service. P. 66. b. These individuals

More information

Pricing to Mass Markets. Simple Monopoly Pricing, Price Discrimination and the Losses from Monopoly

Pricing to Mass Markets. Simple Monopoly Pricing, Price Discrimination and the Losses from Monopoly Pricing to Mass Markets Simple Monopoly Pricing, Price Discrimination and the Losses from Monopoly Many Buyers Costly to set individual prices to each consumer to extract their individual willingness-to-pay.

More information

KEELE UNIVERSITY MID-TERM TEST, 2007 BA BUSINESS ECONOMICS BA FINANCE AND ECONOMICS BA MANAGEMENT SCIENCE ECO 20015 MANAGERIAL ECONOMICS II

KEELE UNIVERSITY MID-TERM TEST, 2007 BA BUSINESS ECONOMICS BA FINANCE AND ECONOMICS BA MANAGEMENT SCIENCE ECO 20015 MANAGERIAL ECONOMICS II KEELE UNIVERSITY MID-TERM TEST, 2007 Thursday 22nd NOVEMBER, 12.05-12.55 BA BUSINESS ECONOMICS BA FINANCE AND ECONOMICS BA MANAGEMENT SCIENCE ECO 20015 MANAGERIAL ECONOMICS II Candidates should attempt

More information

Managerial Economics

Managerial Economics Managerial Economics Unit 4: Price discrimination Rudolf Winter-Ebmer Johannes Kepler University Linz Winter Term 2012 Managerial Economics: Unit 4 - Price discrimination 1 / 39 OBJECTIVES Objectives Explain

More information

1 Monopoly Why Monopolies Arise? Monopoly is a rm that is the sole seller of a product without close substitutes. The fundamental cause of monopoly is barriers to entry: A monopoly remains the only seller

More information

How To Understand The Market Structure Of A Monopoly

How To Understand The Market Structure Of A Monopoly Monopoly 1 1. Types of market structure 2. The diamond market 3. Monopoly pricing 4. Why do monopolies exist? 5. The social cost of monopoly power 6. Government regulation 2 Announcements We are going

More information

Price Discrimination and Two Part Tariff

Price Discrimination and Two Part Tariff Sloan School of Management 15.010/15.011 Massachusetts Institute of Technology RECITATION NOTES #6 Price Discrimination and Two Part Tariff Friday - October 29, 2004 OUTLINE OF TODAY S RECITATION 1. Conditions

More information

Pricing in a Competitive Market with a Common Network Resource

Pricing in a Competitive Market with a Common Network Resource Pricing in a Competitive Market with a Common Network Resource Daniel McFadden Department of Economics, University of California, Berkeley April 8, 2002 I. This note is concerned with the economics of

More information

Market Power and Pricing Strategies

Market Power and Pricing Strategies Market Power and Pricing Strategies Y 10 ou ve no doubt noticed many places where you can receive price discounts if you show your student ID. Commonly discounted goods include movie admissions, clothing

More information

2.2 Price Discrimination

2.2 Price Discrimination 2.2 Price Discrimination Matilde Machado Download the slides from: http://www.eco.uc3m.es/~mmachado/teaching/oi-i-mei/index.html 1 2.2 Price Discrimination Everyday situations where price discrimination

More information

Monopoly WHY MONOPOLIES ARISE

Monopoly WHY MONOPOLIES ARISE In this chapter, look for the answers to these questions: Why do monopolies arise? Why is MR < P for a monopolist? How do monopolies choose their P and Q? How do monopolies affect society s well-being?

More information

Suppose you are a seller with cost 13 who must pay a sales tax of 15. What is the lowest price you can sell at and not lose money?

Suppose you are a seller with cost 13 who must pay a sales tax of 15. What is the lowest price you can sell at and not lose money? Experiment 3 Suppose that sellers pay a tax of 15. If a seller with cost 5 sells to a buyer with value 45 at a price of 25, the seller earns a profit of and the buyer earns a profit of. Suppose you are

More information

The Efficiency of Markets. What is the best quantity to be produced from society s standpoint, in the sense of maximizing the net benefit to society?

The Efficiency of Markets. What is the best quantity to be produced from society s standpoint, in the sense of maximizing the net benefit to society? The Efficiency of Markets What is the best quantity to be produced from society s standpoint, in the sense of maximizing the net benefit to society? We need to look at the benefits to consumers and producers.

More information

Econ 101: Principles of Microeconomics

Econ 101: Principles of Microeconomics Econ 101: Principles of Microeconomics Chapter 14 - Monopoly Fall 2010 Herriges (ISU) Ch. 14 Monopoly Fall 2010 1 / 35 Outline 1 Monopolies What Monopolies Do 2 Profit Maximization for the Monopolist 3

More information

MOBILE AND INTERNET MARKETING

MOBILE AND INTERNET MARKETING MOBILE AND INTERNET Lecture 3 MARKETING MAGDALENA GRACZYK THE ELEMENTS OF THE MARKETING MIX Source: D. Chaffey (2006) Internet Marketing Strategy implementation, and Practice, Prentice Hall, p. 215 PRODUCT

More information

Chapter 15: Monopoly WHY MONOPOLIES ARISE HOW MONOPOLIES MAKE PRODUCTION AND PRICING DECISIONS

Chapter 15: Monopoly WHY MONOPOLIES ARISE HOW MONOPOLIES MAKE PRODUCTION AND PRICING DECISIONS Chapter 15: While a competitive firm is a taker, a monopoly firm is a maker. A firm is considered a monopoly if... it is the sole seller of its product. its product does not have close substitutes. The

More information

66 Ways to Save Money

66 Ways to Save Money A WorkLife4You Guide 66 Ways to Save Money For most kinds of purchases, you can get valuable advice and comparisons on the Internet. Ask a librarian or friends which Internet sites they think are helpful,

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Economics 103 Spring 2012: Multiple choice review questions for final exam. Exam will cover chapters on perfect competition, monopoly, monopolistic competition and oligopoly up to the Nash equilibrium

More information

Price Discrimination

Price Discrimination Perfect Imperfect E. Glen Weyl University of Chicago Lecture 10 Turbo Section Elements of Economic Analysis II Fall 2011 Introduction Perfect Imperfect Key assumption of last lecture was uniform pricing

More information

[name of organization] TRAVEL AND OTHER EXPENSE REIMBURSEMENT POLICY. When incurring business expenses, expects Personnel to:

[name of organization] TRAVEL AND OTHER EXPENSE REIMBURSEMENT POLICY. When incurring business expenses, expects Personnel to: [name of organization] TRAVEL AND OTHER EXPENSE REIMBURSEMENT POLICY 1. Purpose. The Board of Directors of (name of organization) recognizes that board members, officers, and employees ( Personnel ) of

More information

Chapter 11 Pricing Strategies for Firms with Market Power

Chapter 11 Pricing Strategies for Firms with Market Power Managerial Economics & Business Strategy Chapter 11 Pricing Strategies for Firms with Market Power McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved. Overview I. Basic

More information

NBA 600: Day 25 Some Successes and Failures of Electronic Trading 27 April 2004. Daniel Huttenlocher

NBA 600: Day 25 Some Successes and Failures of Electronic Trading 27 April 2004. Daniel Huttenlocher NBA 600: Day 25 Some Successes and Failures of Electronic Trading 27 April 2004 Daniel Huttenlocher Electronic trading Today s Class Large changes in equity markets over 5 years Much less change in most

More information

PRICE DISCRIMINATION Industrial Organization B

PRICE DISCRIMINATION Industrial Organization B PRICE DISCRIMINATION Industrial Organization B THIBAUD VERGÉ Autorité de la Concurrence and CREST-LEI Master of Science in Economics - HEC Lausanne (2009-2010) THIBAUD VERGÉ (AdlC, CREST-LEI) Price Discrimination

More information

Price Discrimination

Price Discrimination E. Glen Weyl University of Chicago Lecture 10 Regular Section Elements of Economic Analysis II Fall 2011 Introduction Key assumption of last lecture was uniform pricing Everyone pays same for ever unit

More information

Chapter 14: Pricing. Figure 14.1: The Structure of E-Commerce

Chapter 14: Pricing. Figure 14.1: The Structure of E-Commerce 1 Chapter 14: Pricing 14.1 Introduction Differentiating your product -- making it what your customers want, or making it different from what your competitors offer, is only half the battle for business

More information

Applying CRM in Information Product Pricing

Applying CRM in Information Product Pricing Applying CRM in Information Product Pricing Wenjing Shang, Hong Wu and Zhimin Ji School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing100876, P.R. China shang_wj83@yahoo.com.cn

More information

Ch 6 Revenue Management

Ch 6 Revenue Management 6-1 Ch 6 Revenue Management 6.1 History 6.2 Levels of Revenue Management 6.3 Revenue Management Strategy 6.4 The System Context 6.5 Booking Control 6.6 Tactical Revenue Management 6.7 Net Contribution

More information

chapter: Solution Monopolistic Competition and Product Differentiation

chapter: Solution Monopolistic Competition and Product Differentiation S221-S230_Krugman2e_PS_Ch16.qxp 9/16/08 9:23 PM Page S-221 Monopolistic Competition and Product Differentiation chapter: 16 1. Use the three conditions for monopolistic competition discussed in the chapter

More information

This new model also has four key factors, but this time they are the 4Cs.

This new model also has four key factors, but this time they are the 4Cs. Services to industry groups e-business suppliers factsheet 2003 www.scottish-enterprise.com Pricing Pricing needs to be seen in the context of the overall Marketing Mix of your company. This would traditionally

More information

Chapter 7: Market Structures Section 1

Chapter 7: Market Structures Section 1 Chapter 7: Market Structures Section 1 Key Terms perfect competition: a market structure in which a large number of firms all produce the same product and no single seller controls supply or prices commodity:

More information

The economics of online personalised pricing

The economics of online personalised pricing The economics of online personalised pricing May 2013 OFT1488 Crown copyright 2013 This report has been written by Patrick Coen and Natalie Timan of the OFT, and has benefitted from comments by various

More information

Chapter 7: Market Structure in Government and Nonprofit Industries. Soft Drinks. What is a Market? Do NFPs Compete? Some NFPs Compete Directly

Chapter 7: Market Structure in Government and Nonprofit Industries. Soft Drinks. What is a Market? Do NFPs Compete? Some NFPs Compete Directly Chapter 7: Market Structure in Government and Nonprofit Industries Soft Drinks HTTP:/www.economics.emory.edu/Working_Pa pers/wp/2008wp/frisvold_08_08_paper.pdf What is a Market? A market is a process in

More information

N-CAP Users Guide. Everything You Need to Know About Using the Internet! How E-Commerce works

N-CAP Users Guide. Everything You Need to Know About Using the Internet! How E-Commerce works N-CAP Users Guide Everything You Need to Know About Using the Internet! How E-Commerce works How E-commerce Works by Marshall Brain Unless you have been living under a rock for the last few years, you

More information

Final Exam Microeconomics Fall 2009 Key

Final Exam Microeconomics Fall 2009 Key Final Exam Microeconomics Fall 2009 Key On your Scantron card, place: 1) your name, 2) the time and day your class meets, 3) the number of your test (it is found written in ink--the upper right-hand corner

More information

Travel and Entertainment Policy. Introduction and Purpose. Purpose

Travel and Entertainment Policy. Introduction and Purpose. Purpose Introduction and Purpose Purpose It is Colliers International s (Company) policy that employees be reimbursed for all appropriate and approved travel, entertainment and other expenses incurred when conducting

More information

Convenience. Product Selection. Fairness in Dealings. Helpful Information. Prices. Social Image. Shopping

Convenience. Product Selection. Fairness in Dealings. Helpful Information. Prices. Social Image. Shopping MGMT 120 Principles of Marketing Lecture 23: Place: Retailing and Wholesale Planning a Retailer s Strategy Convenience Key Economic Factors Affecting Consumers Retail Choice Product Selection Fairness

More information

Chapter 17 Promotional Concepts and Strategies. Section 17.1 Promotion and Promotional Mix Section 17.2 Types of Promotion

Chapter 17 Promotional Concepts and Strategies. Section 17.1 Promotion and Promotional Mix Section 17.2 Types of Promotion Unit 6 Promotion Chapter 17 Promotional Concepts and Strategies Chapter 18 Visual Merchandising and Display Chapter 19 Advertising Chapter 20 Print Advertisements Chapter 17 Promotional Concepts and Strategies

More information

Ticker: Dutch Auctions With A Money-Back Guarantee Sandeep Baliga and Jeff Ely

Ticker: Dutch Auctions With A Money-Back Guarantee Sandeep Baliga and Jeff Ely Results Ticker: Dutch Auctions With A Money-Back Guarantee Sandeep Baliga and Jeff Ely 2 Concept The Problem A venue like a stadium, a theatre, or an orchestra has a fixed capacity of seats in different

More information

Logistics Management Inventory Cycle Inventory. Özgür Kabak, Ph.D.

Logistics Management Inventory Cycle Inventory. Özgür Kabak, Ph.D. Logistics Management Inventory Cycle Inventory Özgür Kabak, Ph.D. Role of Inventory in the Supply Chain Improve Matching of Supply and Demand Improved Forecasting Reduce Material Flow Time Reduce Waiting

More information

Economics Chapter 7 Review

Economics Chapter 7 Review Name: Class: Date: ID: A Economics Chapter 7 Review Matching a. perfect competition e. imperfect competition b. efficiency f. price and output c. start-up costs g. technological barrier d. commodity h.

More information

Chapter 05 Perfect Competition, Monopoly, and Economic

Chapter 05 Perfect Competition, Monopoly, and Economic Chapter 05 Perfect Competition, Monopoly, and Economic Multiple Choice Questions Use Figure 5.1 to answer questions 1-2: Figure 5.1 1. In Figure 5.1 above, what output would a perfect competitor produce?

More information

COMM 220: Ch 17 and 18 Multiple Choice Questions Figure 18.1

COMM 220: Ch 17 and 18 Multiple Choice Questions Figure 18.1 COMM 220: Ch 17 and 18 Multiple Choice Questions 1) When sellers have more information about products than buyers do, we would expect A) sellers to get higher prices for their goods than they could otherwise.

More information

Figure 4-1 Price Quantity Quantity Per Pair Demanded Supplied $ 2 18 3 $ 4 14 4 $ 6 10 5 $ 8 6 6 $10 2 8

Figure 4-1 Price Quantity Quantity Per Pair Demanded Supplied $ 2 18 3 $ 4 14 4 $ 6 10 5 $ 8 6 6 $10 2 8 Econ 101 Summer 2005 In-class Assignment 2 & HW3 MULTIPLE CHOICE 1. A government-imposed price ceiling set below the market's equilibrium price for a good will produce an excess supply of the good. a.

More information

NAVY FEDERAL S BUSINESS REWARDS CARD PROGRAM DESCRIPTION

NAVY FEDERAL S BUSINESS REWARDS CARD PROGRAM DESCRIPTION NAVY FEDERAL S BUSINESS REWARDS CARD PROGRAM DESCRIPTION BUSINESS REWARDS Online Members with NFO access may view their BUSINESS REWARDS point history and redeem points on navyfederal.org 24 hours a day

More information

Competitive Advantage

Competitive Advantage Competitive Advantage When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is

More information

Business Ethics Concepts & Cases

Business Ethics Concepts & Cases Business Ethics Concepts & Cases Manuel G. Velasquez Chapter Four Ethics in the Marketplace Definition of Market A forum in which people come together to exchange ownership of goods; a place where goods

More information

DEMYSTIFYING PRICE OPTIMIZATION:

DEMYSTIFYING PRICE OPTIMIZATION: HOSPITALITY Alex Dietz DEMYSTIFYING PRICE OPTIMIZATION: A REVENUE MANAGER S GUIDE TO PRICE OPTIMIZATION As analytic approaches to pricing have evolved over the last decade, one of the most common questions

More information

Merchandise Accounts. Chapter 7 - Unit 14

Merchandise Accounts. Chapter 7 - Unit 14 Merchandise Accounts Chapter 7 - Unit 14 Merchandising... Merchandising... There are many types of companies out there Merchandising... There are many types of companies out there Service company - sells

More information

Group A (sales per week)

Group A (sales per week) Practice Questions and Answers from Lesson I-7: Elasticity The following questions practice these skills: Use the midpoint method for calculating percent change. Compute price elasticity of demand. Identify

More information

How To Price Bundle On Cable Television

How To Price Bundle On Cable Television K. Bundling Brown and in Cable P. J. Alexander Television Bundling in Cable Television: A Pedagogical Note With a Policy Option Keith Brown and Peter J. Alexander Federal Communications Commission, USA

More information

Monopolistic Competition

Monopolistic Competition Monopolistic Chapter 17 Copyright 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College

More information

Internet Grocery Stores What does the future look like? By: Matthew Rousu

Internet Grocery Stores What does the future look like? By: Matthew Rousu Internet Grocery Stores What does the future look like? By: Matthew Rousu In the past several years, there has been an explosion of Internet companies on the retail market. Internet grocery stores exist,

More information

The First Steps to Achieving Effective Inventory Control. By Jon Schreibfeder EIM. Effective Inventory Management, Inc.

The First Steps to Achieving Effective Inventory Control. By Jon Schreibfeder EIM. Effective Inventory Management, Inc. The First Steps to Achieving Effective Inventory Control By Jon Schreibfeder EIM Effective Inventory Management, Inc. This report is the first in a series of white papers designed to help forward-thinking

More information

POLICY. H.R. Office Services Finance. Services. Search Policies

POLICY. H.R. Office Services Finance. Services. Search Policies H.R. Office Finance Corporate Credit Cards Hospitality Memberships Petty Cash Purchasing Refreshments Signing Authorities Telephone Protocol Travel & Related Travel Advance Travel Expenses TTC Tokens and

More information

How To Sell Wine In The Uk

How To Sell Wine In The Uk CBI Market channels and s for wine in the United kingdom Your trade route through the European market Wine trade in the United Kingdom (UK) is dominated by supermarkets, which increasingly sell private

More information

Oligopoly: How do firms behave when there are only a few competitors? These firms produce all or most of their industry s output.

Oligopoly: How do firms behave when there are only a few competitors? These firms produce all or most of their industry s output. Topic 8 Chapter 13 Oligopoly and Monopolistic Competition Econ 203 Topic 8 page 1 Oligopoly: How do firms behave when there are only a few competitors? These firms produce all or most of their industry

More information

Answers to Chapter 6 Exercises

Answers to Chapter 6 Exercises Answers to Chapter 6 Exercises Review and practice exercises 6.1. Perfect price discrimination. Consider a monopolist with demand D = 10 p and marginal cost MC = 40. Determine profit, consumer surplus,

More information

Distributor/Reseller Marketing A Riddle Wrapped in a Mystery Inside an Enigma

Distributor/Reseller Marketing A Riddle Wrapped in a Mystery Inside an Enigma Distributor/Reseller Marketing A Riddle Wrapped in a Mystery Inside an Enigma 2006 Frank Lynn & Associates, Inc. All Rights Reserved 0 Distributor/Reseller Marketing Over the last 50 years, changes in

More information

CHAPTER 18 MARKETS WITH MARKET POWER Principles of Economics in Context (Goodwin et al.)

CHAPTER 18 MARKETS WITH MARKET POWER Principles of Economics in Context (Goodwin et al.) CHAPTER 18 MARKETS WITH MARKET POWER Principles of Economics in Context (Goodwin et al.) Chapter Summary Now that you understand the model of a perfectly competitive market, this chapter complicates the

More information

Figure: Computing Monopoly Profit

Figure: Computing Monopoly Profit Name: Date: 1. Most electric, gas, and water companies are examples of: A) unregulated monopolies. B) natural monopolies. C) restricted-input monopolies. D) sunk-cost monopolies. Use the following to answer

More information

Chapter 11 Pricing With Market Power

Chapter 11 Pricing With Market Power Chapter 11 Pricing With Market Power Review Questions 1. Suppose a firm can practice perfect first-degree price discrimination. What is the lowest price it will charge, and what will its total output be?

More information

ATB Financial Travel & Entertainment Policy

ATB Financial Travel & Entertainment Policy ATB Financial Travel & Entertainment Policy Table of Contents 1. Purpose... 1 2. Scope... 1 3. General... 2 4. Definitions... 2 5. Travellers Responsibilities... 3 6. Booking Travel... 3 7. Accountability

More information

product and service delivery

product and service delivery A DV I C E B O O K L E T product and service delivery PRODUCT / SERVICE DELIVERY Every business sells either a product (a physical item) or a service (something intangible), or both. Many businesses develop

More information

11 PERFECT COMPETITION. Chapter. Competition

11 PERFECT COMPETITION. Chapter. Competition Chapter 11 PERFECT COMPETITION Competition Topic: Perfect Competition 1) Perfect competition is an industry with A) a few firms producing identical goods B) a few firms producing goods that differ somewhat

More information

MODULE 1 Distribution And Channel Management

MODULE 1 Distribution And Channel Management MODULE 1 Distribution And Channel Management Agenda Background Marketing Channels Functions of Marketing Channels Types of Channels Factors affecting Channel Decisions Channel Conflict Summary Background

More information

Chapter 5. B2B E-Commerce: Selling and Buying in Private E-Markets

Chapter 5. B2B E-Commerce: Selling and Buying in Private E-Markets Chapter 5 B2B E-Commerce: Selling and Buying in Private E-Markets Learning Objectives 1. Describe the B2B field. 2. Describe the major types of B2B models. 3. Discuss the characteristics of the sell-side

More information

Everything is worth what its purchaser will pay for it. Publilius Syrus (1st century B.C.)

Everything is worth what its purchaser will pay for it. Publilius Syrus (1st century B.C.) ch12_perloff_16072 2/17/03 4:50 PM Page 387 Pricing 12 CHAPTER Everything is worth what its purchaser will pay for it. Publilius Syrus (1st century B.C.) Why does Disneyland charge local residents $28

More information

Economics 431 Fall 2003 1st midterm Answer Key

Economics 431 Fall 2003 1st midterm Answer Key Economics 431 Fall 003 1st midterm Answer Key 1) (7 points) Consider an industry that consists of a large number of identical firms. In the long run competitive equilibrium, a firm s marginal cost must

More information

Stop Reacting to Buyers Price Expectations; Manage Them

Stop Reacting to Buyers Price Expectations; Manage Them Stop Reacting to Buyers Price Expectations; Manage Them BY THOMAS T. NAGLE AND JOSEPH ZALE Executive Takeways Pricing policies empower companies to manage customers price expectations, and avoid the cycle

More information

IEEM 341 Supply Chain Management Week 11 Risk-Pooling Dr. Lu

IEEM 341 Supply Chain Management Week 11 Risk-Pooling Dr. Lu IEEM 341 Supply Chain Management Week 11 Risk-Pooling Dr. Lu 11-1 Impact of Aggregation on Safety Inventory Risk-pooling effect Models of aggregation Information centralization Specialization Product substitution

More information

First degree price discrimination ECON 171

First degree price discrimination ECON 171 First degree price discrimination Introduction Annual subscriptions generally cost less in total than one-off purchases Buying in bulk usually offers a price discount these are price discrimination reflecting

More information

Principles of demand management Airline yield management Determining the booking limits. » A simple problem» Stochastic gradients for general problems

Principles of demand management Airline yield management Determining the booking limits. » A simple problem» Stochastic gradients for general problems Demand Management Principles of demand management Airline yield management Determining the booking limits» A simple problem» Stochastic gradients for general problems Principles of demand management Issues:»

More information

Erik Blachford. President and CEO, Expedia, Inc. & IAC Travel

Erik Blachford. President and CEO, Expedia, Inc. & IAC Travel Erik Blachford President and CEO, Expedia, Inc. & IAC Travel Key Competitive Advantages Unique US travel brand portfolio Superior technology platform Unparalleled global reach Entrepreneurial management

More information

Sourcing and Contracts Chapter 13

Sourcing and Contracts Chapter 13 Sourcing and Contracts Chapter 13 1 Outline The Role of Sourcing in a Supply Chain Supplier Scoring and Assessment Supplier Selection and Contracts Design Collaboration The Procurement Process Sourcing

More information

36106 Managerial Decision Modeling Revenue Management

36106 Managerial Decision Modeling Revenue Management 36106 Managerial Decision Modeling Revenue Management Kipp Martin University of Chicago Booth School of Business October 5, 2015 Reading and Excel Files 2 Reading (Powell and Baker): Section 9.5 Appendix

More information

T H I R D E D I T I O N

T H I R D E D I T I O N THIRD EDITION For most kinds of purchases, you can get valuable advice and comparisons on the Internet. Ask a librarian or friends which Internet sites they think are helpful, or you can use a search engine

More information

THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY

THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY Management Marketing - Tourism Ec. Ecaterina Nicoleta Ciurez Ph.D University of Craiova, Faculty of Economics and Business Administration, Craiova,

More information

E-Commerce Business Models and Concepts

E-Commerce Business Models and Concepts Copyright 2002 Pearson Education, Inc. Slide 2-1 E-Commerce Business Models and Concepts Created by, David Zolzer, Northwestern State University Louisiana Learning Objectives! Identify the key components

More information

Using Revenue Management in Multiproduct Production/Inventory Systems: A Survey Study

Using Revenue Management in Multiproduct Production/Inventory Systems: A Survey Study Using Revenue Management in Multiproduct Production/Inventory Systems: A Survey Study Master s Thesis Department of Production economics Linköping Institute of Technology Hadi Esmaeili Ahangarkolaei Mohammad

More information