1.7 — Pricing Strategies — Class Content

Meeting Date

Tuesday, February 14, 2023

Overview

Today we look at how firms price their products when they have market power (that is to say, how most firms in reality price their products).

Readings

Recommended Readings

This is a part of our review of major production concepts from Microeconomics. You can consider looking at the following in the textbook if you are rusty or want to know more about these concepts:

• Ch. 5 in Church & Ware, 2000

• NPR Planet Money 416: “Why The Price of Coke Didn’t Change For 70 years”

• NPR Planet Money 653: “The anti-store”

• NPR Planet Money 633: “The Birth and Death of the Price Tag”

• Why Trains are so Expensive

Practice

Today you will be working on practice problems:

• Practice Problems
• Answer Key

Slides

Below, you can find the slides in two formats. Clicking the image will bring you to the html version of the slides in a new tab. The lower button will allow you to download a PDF version of the slides.

Tip

You can type h to see a special list of viewing options, and type o for an outline view of all the slides.

I suggest printing the slides beforehand and using them to take additional notes in class (not everything is in the slides)!

Download as PDF