CHAPTER 10: MARKET POWER AND PRICING STRATEGY Introduction We have examined how firms with market power can generate positive economic profit by influencing the price at which their products or services are sold. This conclusion was based on the assumption that firms must charge the same price to all customers. Now we explore alternative pricing strategies and show that when a firm with market power can “discriminate” among customers‚ additional surplus (beyond that achieved by a single-price
Premium Marginal cost Pricing Supply and demand
Capital Asset Pricing Model Capital Asset Pricing Model (CAPM) Capital market theory extends portfolio theory and develops a model for pricing all risky assets. It is an equation that quantifies security risk and defines a risk/return relationship Capital asset pricing model (CAPM) will allow you to determine the required rate of return for any risky asset Implications of the CAPM: CAPM indicates what should be the expected or required rates of return on risky assets This helps to
Premium
The Pricing Strategies of Fast Foods vs. Restaurants Dateesha L. Cavin Webster University 28 April 2011 Abstract This paper explores the difference in pricing strategies of Fast Food vs. Restaurants. Fast food restaurants compared to sit-down restaurants are exceedingly popular because they prove to fit comfortably in our active‚ modern day lives. Today‚ many people eat fast food instead of cooking meals at home. The reason for this is that many of us are constantly busy with our daily responsibilities
Premium Fast food Pricing Food
PRADEEP K. CHINTAGUNTA* In studying retailer pricing behavior‚ researchers typically assume that retailers maximize profits across all brands in a focal product category. In this article‚ the author attempts to study empirically the extent to which three factors affect retail prices: (1) the effects of payments from manufacturers to the retailer other than regular promotions‚ as well as the effects of additional costs borne by the retailer for these brands; (2) the retailer’s objectives specific
Premium Marketing Price Supply and demand
Problem: The main problem faced by Eurotunnel’s senior management is that they have not developed a competitive pricing strategy to increase its passenger and freight travel market share. Case Solution: Eurotunnel should use a market-penetration pricing strategy at all times to gain freight customers. It should use a market-penetration pricing strategy during non-peak periods and a premium pricing strategy during peak periods with passenger car customers. Rationale: This strategy works best for Eurotunnel
Premium Elasticity Price elasticity of demand Pricing
responsibility of the Olympic Delivery Authority while the London Organizing Committee of the Olympic Games (LOCOG) was responsible for staging the games. Paul Williamson was hired by the LOCOG as the Head of Ticketing‚ and he soon realized that pricing tickets was a large endeavor in itself‚ with many challenges. The Trade-Offs Chris Townsend‚ Williamson’s boss and the Commercial Director of the LOCOG‚ made sure Williamson never lost sight of their ultimate goal‚ maximizing ticket revenues and
Free Summer Olympic Games 2008 Summer Olympics 2012 Summer Olympics
Daniel Zanata Dal Osto – MGT401-KY 9/17/14 We Googled You Case Assignment Read the case “We Googled You” and answer the following questions about the case in 750-1000 words. Submit to the link on Blackboard by due date and time. Minimum answer length of 750 words total Use a separate labeled paragraph for each answer. Give each question its own section‚ with a title. 1) GOALS AND OBJECTIVES: What are the goals/objectives of the company in this situation? What is it that the company wants to achieve
Free China Han Chinese Overseas Chinese
Ashley Mears Pricing Beauty: The Making of a Fashion Model University of California Press‚ Berkeley and Los Angeles‚ 2011 (ISBN-978-0-520-27076-3)‚ 261 pp. Reviewed by: Paige Ross‚ Hamline University‚ USA In Pricing Beauty: The Making of a Fashion Model‚ Ashley Mears investigates and critiques the inequalities present in the modern-day fashion industry‚ focusing on the experiences of models in the industry‚ and the challenges they face in navigating the fashion world‚ managing their own physical
Premium Gender role Transgender Gender
A CASE STUDY ON THE USE OF COST-PLUS PRICING ABSTRACT In the business world of economic manufacturing and production‚ there are actually several ways and approaches for one business entity to recover their production expenses and realize profit. In this aspect‚ the production output is primarily the key factor in the profit generation of the business as their output serves as their revenue. In the accounting perspective‚ generation of revenue through using the invested resources of the
Premium Pricing
Bond Pricing Based on Nelson-Siegel Model ——An Analysis of Varied Parameter τ Introduction Nelson and Siegel (1987) suggest to fit the forward rate curve at a given date with a mathematical class of approximating functions. The model precisely reflects the expected YTM with a flexible yield curve in the Term Structure Theorem. In this paper‚ we test the fitness of NS model and try to evaluate how deeply the NS model performs with different types of bonds via sampling and comparasion. We focus on
Premium Bond Time Term