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Pricing Strategies for Firms with Market Power


Headline: Mickey Mouse Lets You Ride "For Free" at Disney World
  1. Introduction
  2. Basic Pricing Strategies
    1. Review of the Basic Rule of Profit Maximization
    2. A Simple Pricing Rule for Monopoly and Monopolistic Competition
    3. A Simple Pricing Rule for Cournot Oligopoly
  3. Strategies that Yield Even Greater Profits
    1. Extracting Surplus from Consumers
      1. Price Discrimination
      2. Two-Part Pricing
      3. Block Pricing
      4. Commodity Bundling
    2. Pricing Strategies for Special Cost and Demand Structures
      1. Peak-Load Pricing
      2. Cross Subsidies
      3. Transfer Pricing
    3. Pricing Strategies in Markets with Intense Price Competition
      1. Price Matching
      2. Inducing Brand Loyalty
      3. Randomized Pricin
  4. Answering the Headline








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