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“Pricing” academic course Spring 2013 ----------------------------------------------------------------------------------------------------------------------------Dr. Dinara Bobusheva IAAU Date: Lecture Feb 5,13 Feb 5,13 Tue Tue FIN-4 (A) FIN-4 (B) Class time: 09.00 a.m. – 11.20 a.m. Ibid. CR # 109 Ibid.

Lecture 1. Syllabus Review. Academic course overview. Section I. The Theoretical fundamentals of Pricing in a market economy: Functioning, and comparative efficiency of the Pricing system in conditions of the Pure Competition, and Pure Monopoly. Practical Module 1. Comparative analysis of Prices and Outputs as a result of Pure Competition, and Pure Monopoly. Basic Models of the Markets can be presented as follows: (1) Market of Pure Competition Features:  Presence of many firms, but none of which can render a considerable influence on level of the current prices, because of each of them holds a small market share,  Uniformity and interchangeability of the competing products/services, and  Lack of the Price restrictions. Pricing strategy: The role of marketing researches, Pricing Policy, actions for sale stimulation, is insignificant; therefore the prices are formed under the influence of a supply and demand. 1.1. Strategy of “Accidental Prices Reduction” is known as an establishment of the greatest possible price, which then slowly decreases to level of the market; for this period, the firm manages to sell a quantity of the goods, thereby, having increased the income. (2) Market of Pure Monopoly Pricing strategies: The given set of typical strategies are developing by a principle of the Price Discrimination, including:  Differentiation on groups of buyers,  Differentiation by a variant of the products or services, and  Differentiation on territory. 2.1. Strategy of Plural Prices - as a result of the analysis of Demand Curves, a monopolist sets as much as possible high price for each group of consumers. 2.2. Strategy of Market Segmentation is determined as