Keyword: reservation price
Marginal Revenue of Perfect Price Discriminators (11/17/2007)
The marginal revenue of perfect price discriminators is equal to price.
Keywords: economic surplus, efficiency, marginal revenue, marginal willingness to pay, MR, MWP, P, perfect price discrimination, price, profit maximization, reservation price, total willingness to pay, TWP
Marginal Revenue under Single-pricing - Price Searchers vs Price Takers (11/17/2007)
Single pricing leads to P = MR under price taking or P > MR under price searching.
Keywords: economic surplus, efficiency, price searching, price taking, profit, reservation price, single pricing, single-pricing
Pay What You Want (12/27/2014)
The pay-what-you-want model makes economic sense when it is used as a limited-time promotion and as a loss-leader to increase sale of higher profit-margin related products.
Keywords: download, loss leader, pay-what-you-want, piracy, price discrimination, Radiohead, reservation price, self-image
Price Searchers, Price Discriminators, and Price Takers (9/19/2006)
The uniqueness of products affects the pricing power of sellers.
Keywords: output, price discriminator, price searcher, price taker, profit, reservation price
Pricing and economic surplus (7/7/2006)
Pricing affects how economic surplus is distributed between consumers and producers and thus the incentive and resources to come up with innovative products.
Keywords: commodity, consumer surplus, economic surplus, innovative products, marginal cost, marginal revenue, monopoly, perfect competition, price discrimination, reservation price, single pricing