MEclass4segmentedpricingIhandout1P

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Class : Segmented Pricing I Group Based Pricing Managerial Economics Welcome back! Please be ready to use pollev (Sicherman)
Class 5 Course Roadmap 2 PROFITABILITY & PRICING Sessions 1-5 1. Consumer Demand 2. Costs & Profitability I 3. Costs & Profitability II 4. Segmented Pricing I 5. Segmented Pricing II Sessions 6-12 6. Game Theory I 7. Game Theory II 8. Game Theory III 9. Auction I 10. 10. Auction II 11. Agency & Incentives 12. Health Exchange STRATEGIC DECISIONS COMPETITIVE MARKETS Strategic Interaction
Class 5 Segmented Pricing Definition: A firm sells the "same" product or service at more than one price In Class 3, we did segmented pricing of snack bars to students & the soup kitchen - $2.00 for students but 75¢ for soup kitchen In this class (and in Class 5) we will continue to see how price segmentation raises profits. 3
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