AREC 384 pricing with mkt power

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The flashcards below were created by user hcunning on FreezingBlue Flashcards.


  1. stated preference
    • what you say you're gonna do
    • "cheap talk"
  2. revealed preference
    what you actually did despite what you said
  3. 1st degree price discrimination
    • ideally, a firm charging a price equal to each consumer's WTP
    • captures 100% of consumer surplusĀ 
    • ex. like an auction
  4. 2nd degree price discrimination
    • firms charge different prices per unit for different quantities purchasedĀ 
    • ex. combo discounts at fast food places
  5. 3rd degree price discrimination
    • charge different prices to different groups of consumersĀ 
    • ex. student discounts, early bird dinners

Card Set Information

Author:
hcunning
ID:
324977
Filename:
AREC 384 pricing with mkt power
Updated:
2016-10-26 21:23:39
Tags:
pricing market economics
Folders:

Description:
lecture 6
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