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1 mar 2017 · This article offers a theory of pricing in consumer markets that relates cost-plus pricing and value-based pricing to price competition and price leadership, including, in particular,...
Price theory is concerned with explaining economic activity in terms of the creation and transfer of value, which includes the trade of goods and services between difierent economic agents. A puzzling question addressed by price theory is, for example: why is water so cheap and diamonds
Lecture Notes on Pricing. (Revised: July 2012) These lecture notes cover a number of topics related to strategic pricing. Some of these are topics already presented in 15.013, and some are new. The objective is to provide you with a pricing “toolbox,” i.e., a set of pricing techniques, each of which might apply in some situations but not in others.
This paper reviews topics in price theory such as rational choice, Walrasian equilibria, complete and incomplete markets, externalities and nonmarket goods, strategic pricing with complete and incomplete information, and some behavioral anomalies.
Full Costs, Cost Changes, and Prices. This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research. Volume Title: Business Concentration and Price Policy. Volume Author/Editor: Universities-National Bureau Committee for.
Rather than calculating prices to cover costs or achieve sales goals, students will learn to make strategic pricing decisions that proactively manage customer perceptions of value, motivate purchasing decisions, and shift demand curves.
An online appendix provides an exposition of production decisions based on detailed cost curves. After reading and reviewing this chapter, you should be able to: Describe the four different views of market power. List the assumptions behind the traditional model of perfectly competitive markets.
