Principles of Pricing ：An Analytical Approach

Publication subTitle ：An Analytical Approach

Author： Rakesh V. Vohra; Lakshman Krishnamurthi

Publisher： Cambridge University Press‎

Publication year： 2012

E-ISBN: 9781139211352

P-ISBN(Paperback): 9781107010659

Subject： F014.31 price theory

Keyword：经济学Economics

Language： ENG

Access to resources Favorite

Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.

Principles of Pricing

Description

Pricing drives three of the most important elements of firm success: revenue and profits, customer behavior and firm image. This book provides an introduction to the basic principles for thinking clearly about pricing. Unlike other marketing books on pricing, the authors use a more analytic approach and relate ideas to the basic principles of microeconomics. Rakesh Vohra and Lakshman Krishnamurthi also cover three areas in greater depth and provide more insight than may be gleaned from existing books: 1) the use of auctions, 2) price discrimination and 3) pricing in a competitive environment.

Chapter

Cover

PRINCIPLES OF PRICING

2.2 Rational Buyer Model

2.3 Warts

2.4 Defense of the Rational Buyer Model

2.5 Price Setting

2.6 Key Points

THREE: Estimating Price Response

3.1 Economic Value to the Customer

3.1.1 Five Steps

3.1.2 Psychology and EVC

3.2 Key Points

FOUR: Uniform Posted Price

4.1 Margin versus Volume

4.1.1 Where Demand Curves Come From

Independent Private Values Model

Regression

4.1.2 Elasticity of Demand

4.2 Margin and Elasticity

4.2.1 Choosing Quantity

4.3 The Relevance of Costs to Prices

4.4 Break-Even Calculations

4.5 The Sin of Cost-Plus Pricing

4.6 Credibility

4.7 Selling to One

4.8 Many Products

4.9 Negotiation

4.10 Selling through an Intermediary

4.10.1 First Vignette

4.10.2 Second Vignette

Resale Price Maintenance

4.11 Adverse Selection

4.12 The Price Waterfall

4.12.1 Using the Price Waterfall Methodology

4.13 Key Points

4.14 Technical Aside

4.14.1 Elasticity of Demand

4.14.2 The Markup Formula

FIVE: Auctions

5.1 The BenchmarkModel

5.1.1 English Ascending

5.1.2 Sealed-Bid Second Price

5.1.3 Sealed-Bid First Price

5.1.4 Dutch Descending

5.1.5 Revenue Comparison

Using a Reserve

5.1.6 Auctions versus Posted Price

5.1.7 Auctions versus Posted Price (Encore)

5.1.8 An eBay Interlude

5.2 Beyond Benchmark

5.2.1 Risk

5.2.2 Common Values

5.2.3 Heterogeneous Bidders

5.2.4 Violating the Rules

5.2.5 Multiple Objects

5.3 Key Points

5.4 Technical Aside

5.4.1 Sealed-Bid First Price

SIX: Price Discrimination

6.1 The Third Degree

6.2 The Second Degree

6.2.1 Versioning

6.2.2 Bundling

A Cable TV Interlude

Bundling and Entry Deterrence

Legality of Bundling

Bundling Multiple Units

How Many Bundles?

An Oncological Interlude

Nonlinear Pricing

6.3 Revenue Management

6.4 Gray Markets

6.5 Legal Aspects of Price Discrimination

6.6 Key Points

6.7 Technical Aside

6.7.1 Formulation of Example 15

6.7.2 Analysis of Bundling

6.7.3 Nonlinear Pricing

6.7.4 Choosing a Protection Level

SEVEN: Pricing and Competition

7.1 The Pricing Dilemma

7.1.1 Objections to the PD

7.1.2 A Silver Lining

7.2 Repetition

Price Matching Guarantees

7.2.1 Collusion and Signaling

7.2.2 Predation

7.3 Capacity

7.3.1 Capacity Preemption

7.3.2 Pricing Using the Supply Curve

7.4 Differentiation

7.4.1 Differentiation and Substitutes

7.4.2 Loyalty Programs

The Logic

7.4.3 Competing with Complements

7.5 Tale of the Inferior Entrant

7.5.1 An Airline Interlude

7.5.2 A TV Interlude

7.5.3 Loyalty Discounts

7.5.4 Retreating Brands

7.6 Key Points

7.7 Technical Aside

7.7.1 Analysis of the Capacity Game

7.7.2 Cournot Model

7.7.3 Bertrand–Hotelling Model

EIGHT: Bringing It All Together

NINE: Appendix on Game Theory

9.1 Representing the Game

9.1.1 Simultaneous-Move Game

9.1.2 Sequential Games

9.2 Playing the Game

9.2.1 Dominated Strategies and the Price Game

Sequential Elimination

9.2.2 Backward Induction and the Centipede Game

9.2.3 Equilibrium

Existence

References

Index

The users who browse this book also browse