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Chapter 11

Chapter 11. Pricing with Market Power. Topics to be Discussed. Capturing Consumer Surplus Price Discrimination Intertemporal Price Discrimination and Peak-Load Pricing The Two-Part Tariff Bundling Advertising. Introduction.

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Chapter 11

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Chapter 11

Chapter 11. Pricing with Market Power. Capturing Consumer Surplus. All pricing strategies we will examine are means of capturing consumer surplus and transferring it to the producer Profit maximizing point of P* and Q* But some consumers will pay more than P* for a good.

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Ar2 mct mrt mr2 - PowerPoint PPT Presentation

Chapter 11

Chapter 11

Chapter 11