1 / 4

I. Economic and Behavioral Foundations of Pricing

Takeaways. I. Economic and Behavioral Foundations of Pricing. II. Innovative Pricing Concepts and Tools. III. Internet Pricing Models. Outline. Top 3 takeaways + your best class session (on an index card) Top 10 Takeaways Teaching Evaluation Sample Exam Questions.

pettyr
Download Presentation

I. Economic and Behavioral Foundations of Pricing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Takeaways I. Economic and Behavioral Foundations of Pricing II. Innovative Pricing Concepts and Tools III. Internet Pricing Models

  2. Outline • Top 3 takeaways + your best class session (on an index card) • Top 10 Takeaways • Teaching Evaluation • Sample Exam Questions

  3. The Ten Takeaways • EVC (Is the price too high?, Cumberland Industries). • The Ho’s Diagram (breakeven analysis and curve, evaluate price change and separate winners from losers). • Four Strategic Principles (1. know your opponents, 2. distinguish between one-shot vs. repeated interaction, 3. develop strategic foresight, and 4. promote coordination) (Federated Industries). • Reference Price, Price Image, and Prospect Theory ( Biopure, May Company, Tweeter, Computron) • Conjoint Analysis (demand curve and price sensitivity, EVC for brand and features).

  4. The Ten Takeaways • Customize, Customize, Customize (by customer, location, product design (versioning), quantity (nonlinear), and time) (Cambridge Software) • Customer vs. Product Margin (bundling, product line pricing, Tweeter etc., lost leader). • Experimental Market Testing (price matching, B2B contract Design, seller versus buyer-posted price formats, auction simulation). • Revenue Model Design (revenue levers, incentive compatibility, lock-in, eBay and FreeMarkets). • Revelation and Efficiency Principles (English Auction). Revenue equivalence and strategic equivalence theorems. Revenue rankings of auction formats.

More Related