ECON ECON 411

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ECON ECON-411 Industrial Organization: Markets and Strategies Paul Belleáamme and Martin Peitz published by Cambridge University Press Part IV. Pricing strategies and market segmentation Exercises

ECON ECON-411 Industrial Organization: Markets and Strategies Paul Belleáamme and Martin Peitz published by Cambridge University Press Part IV. Pricing strategies and market segmentation Exercises
Exam (elaborations) • 22 pages • 2023

xercise 1 Geographical pricing [included in 2nd edition of the book] "Purple Dream"has the monopoly on the production of purple light-emitting diodes (LEDs). It faces geographically separated markets, market 1 and 2. The demands are qA = 1 pA and qB = 1=2 pB, respectively. The transport and production costs are set to zero. 1. Assume that the Örm chooses to set a uniform price across the two markets. What is the proÖt maximizing uniform price? What are the quantities sold on the two...