European Journal of Operational Research 224 (2013) 507–519 Contents lists available at SciVerse ScienceDirect European Journal of Operational Research journal homepage: www.elsevier.com/locate/ejor Production, Manufacturing and Logistics Pricing decisions for complementary products with firms’ different market powers Jie Wei a,⇑, Jing Zhao b, Yongjian Li c a General Courses Department, Military Transportation University, Tianjin 300161, PR China School of Science, Tianjin Polytechnic
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Managerial Economics Unit 4: Price discrimination Rudolf Winter-Ebmer Johannes Kepler University Linz Winter Term 2012 Managerial Economics: Unit 4 - Price discrimination 1 / 39 OBJECTIVES Objectives ◮ Explain how managers use price discrimination to increase profits ⋆ ⋆ Identify submarkets with different price elasticities of demand Segment the market and charge different prices to consumers in each submarket Managerial Economics: Unit 4 - Price discrimination 2 / 39
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user in mind. This is a key part of meeting the needs of a market. Ford carries many brands within each line. Product line depth refers to the number of versions offered of each product in the line. Thus, Ford's Fusion comes in three different models and specifications. Finally, the consistency of the product mix refers to how closely relate the various product lines are in end use, production requirements, distribution channels, or some other way. Ford Products • Passenger cars and trucks
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All of the models to be discussed, i.e. Markowitz, Single Index, CAPM, and APT, have one single goal that is accomplished by using them. This goal is to make a portfolio, or individual securities, as efficient and well performing as possible by finding the optimal weights, highest return, and lowest risk. The Harry Markowitz model of 1952, or the mean-variance model, was one of the earliest models created to compare and contrast securities outcomes. This model uses the weights, standard deviation
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The stochastic discount factor (SDF) a. is unique when the capital market is mean-variance e¢ cient. b. is a random variable that is used for pricing all other risky assets. c. has an expected value equal to the present value of 1: d. is unique when the capital market is complete. *e. satis…es all above descriptions except a). 3. Consider a trinomial model of capital market in which there are three possible states of economy in one year with equal probability of occurrence. Let s denote the price
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* Question 1 0 out of 1 points | | | The common price-earnings valuation method applied the ____ price-earnings ratio to ____ earnings per share in order to value the firm's stock. | | | | | Selected Answer: | b. firm's; industry | Correct Answer: | d. average industry; firm's | | | | | * Question 2 1 out of 1 points | | | If security prices fully reflect all market-related information (such as historical price patterns) but do not fully reflect all other public
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the differences between value-based pricing and cost-based pricing. Businesses have methods by which to price their products and services. Value-based pricing and cost-based pricing are two common strategies companies use to promote goods and services. Setting the right prices is the key to effective marketing as well as to long-term profitability. Both of these approaches have strengths and weaknesses relative to the other. When a company uses cost-based pricing, the company sets a price at a percentage
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set price. For example, if you want a profit of rm2, given the cost is rm10, you will charge the product at the price of RM12. Another method is, if you want 20% profit, you will set the price at RM12 (1.2*RM10). For break even or target profit pricing, you may choose to use break even chart. Please review text and slides for detail. When marketers use cost as the bases for setting the
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1. Identify and evaluate Clearwater Technologies existing pricing on the QTX line. What are its pricing objectives? With the introduction of the upgrade, should Clearwater reconsider its pricing strategy? The existing pricing: Number of seats | To end users | Unit cost | Actual unit cost | 10 | 8,000 | 500 | 900 | 20 | 14,000 | 700 | 900 | 30 | 17,250 | 900 | 900 | According to table 1 and 2, because Clearwater is upgrading its products right now, they will design the 30-seat server
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our research, price for infant’s airfare not more than RM100 for any location. This proof that Berjaya Air not only to earn profit, they also concern about their demand. Pricing strategy used by Berjaya Air are cost-based pricing, value-based pricing and competition-based pricing. Cost-based pricing can be defined as a pricing method that set prices based on the financial cost, for example, fixed costs, variable costs and semi-variable costs. For example, the rent of Subang Airport, and the salary
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