Weekly summary 3
During this week we learnt about the Pricing and economics of strategy where we denoted that Price is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding and risk taking ability. A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors.

Personalized pricing extracts the maximum amount each customer is willing to pay for the product. Each consumer is charged a price that makes him or her indifferent between purchasing and not purchasing the product.
Strategy refers to the general policies that managers employ to generate value. Value Capture is the process of retaining some percentage of the value provided in every Transaction. For example, if you bring $1 million of revenue to a client, and you charge $100,000, you are capturing 10% of the value you created. The more value you capture, the less attractive your offer becomes.
Game theory : Set of concepts aimed at decision making in situations of competition and conflict (as well as of cooperation and interdependence) under specified rules. Game theory employs games of strategy (such as chess) but not of chance (such as rolling a dice). A strategic game represents a situation where two or more participants are faced with choices of action, by which each may gain or lose, depending on what others choose to do or not to do.

Nash Equilibrium is a term used in game theory to describe equilibrium where each player's strategy is optimal given the strategies of all other players. A Nash Equilibrium exists when there is no unilateral profitable deviation from any of the players involved. In other words, no player in the game would take a different action as long as every other