【正文】 43( to to ???? AP EE)。 C buys the bundle Chapter 11 Slide 87 Bundling Example Sell separately $50 $90 $150 Pure bundling $100 $200 Mixed bundling $ $ $100 $ C1 = $20 C2 = $30 P1 P2 PB Profit Chapter 11 Slide 88 Bundling ? Sell Separately ? 3($50 $20) + 1($90 $30) = $150 ? Pure Bundling ? 4($100 $20 $30) = $200 ? Mixed Bundling ? ($ $20) + ($ $30) 2($100 $20 $30) = $ ? C1 = $20 C2 = $30 Chapter 11 Slide 89 Bundling ? Question ? If MC = 0, would mixed bundling still be the most profitable strategy with perfect negative correlation? Chapter 11 Slide 90 Mixed Bundling with Zero Marginal Costs r2 r1 20 40 60 80 100 20 40 60 80 100 120 120 In this example, consumers B and C are willing to pay $20 more for the bundle than are consumers A and D. With mixed bundling, the price of the bundle can be increased to $120. A amp。 more inelastic ?MR1 = MR2 = MC ?QT control MC Q1 P1 MC = MR1 at Q1 and P1 Chapter 11 Slide 31 No Sales to Smaller Market Even if thirddegree price discrimination is feasible, it doesn’t always pay to sell to both groups of consumers if marginal cost is rising. Chapter 11 Slide 32 No Sales to Smaller Market Quantity D2 MR2 $/Q MC D1 MR1 Q* P* Group one, with demand D1, are not willing to pay enough for the good to make price discrimination profitable. Chapter 11 Slide 33 The Economics of Coupons and Rebates ? Those consumers who are more price elastic will tend to use the coupon/rebate more often when they purchase the product than those consumers with a less elastic demand. ? Coupons and rebate programs allow firms to price discriminate. Price Discrimination Chapter 11 Slide 34 Price Elasticities of Demand for Users Versus Nonusers of Coupons Toilet tissue Stuffing/dressing Shampoo Cooking/salad oil Dry mix dinner Cake mix Price Elasticity Product Nonusers Users Chapter 11 Slide 35 Cat food Frozen entr233。 and reduce revenue and profits ?PC: petitive price Quantity $/Q D MR Pmax MC PC A P* Q* P1 B P2 Chapter 11 Slide 8 Capturing Consumer Surplus Quantity $/Q D MR Pmax MC PC A P* Q* P1 B P2 Question How can the firm capture the consumer surplus in A and sell profitably in B? Answer Price discrimination Twopart tariffs Bundling Chapter 11 Slide 9 Capturing Consumer Surplus ? Price discrimination is the charging of different prices to different consumers for similar goods. Chapter 11 Slide 10 Price Discrimination ? First Degree Price Discrimination ? Charge a separate price to each customer: the maximum or reservation price they are willing to pay. Chapter 11 Slide 11 P* Q* Without price discrimination, output is Q* and price is P*. Variable profit is the area between the MC amp。Chapter 11 Pricing with Market Power Chapter 11 Slide 2 Topics to be Discussed ? Capturing Consumer Surplus ? Price Discrimination ? Intertemporal Price Discrimination and PeakLoad Pricing Chapter 11 Slide 3 Topics to be Discussed ? The TwoPart Tariff ? Bundling ? Advertising Chapter 11 Slide 4 Introduction ? Pricing without market power (perfect petition) is determined by market supply and demand. ? The individual producer must be able to forecast the market and then concentrate on managing production (cost) to maximize profits. Chapter 11 Slide 5 Introduction ? Pricing with market power (imperfect petition) requires the individual producer to know much more about the characteristics of demand as well as manage production. Chapter 11 Slide 6 Capturing Consumer Surplus Quantity $/Q D MR Pmax MC If price is raised above P*, the firm will lose sales and reduce profit. PC PC is the price that would exist in a perfectly petitive market. A P* Q* P1 Between 0 and Q*, consumers will pay more than P*consumer surplus (A). B P2 Beyond Q*, price will have to fall to create a consumer surplus (B). Chapter 11 Slide 7 Capturing Consumer Surplus ?P*Q*: single P amp。 MR (yellow). Additional Profit From Perfect FirstDegree Price Discrimination Quantity $/Q Pmax With perfect discrimination, each consumer pays the maximum price they are willing to pay. Consumer surplus is the area above P* and between 0 and Q* output. D = AR MR MC Output expands to Q** and price falls to PC where MC = MR = AR = D. Profits increase by the area above MC between old MR and D to output Q** (purple) Q** PC Chapter 11 Slide 12 P* Q* Consumer surplus when a single price P* is charged. Variable profit when a single price P* is charged. Additional profit from perfect price discrimination Quantity $/Q Pmax D = AR MR MC Q** PC With perfect discrimination ? Each customer pays their reservation price ?Profits increase Additional Profit From Perfect FirstDegree Price Discrimination Chapter 11 Slide 13 ? Question ? Why would a producer have difficulty in achieving firstdegree price discrimination? ? An