Taught In English

There is no language prerequisite for courses at this language level.

PRICING POLICY

This course will cover the analysis of pricing policies and related topics in consumer behavior. It will provide the tools to develop an effective pricing strategy as well as the microeconomic theory behind that strategy. What is expected of you? Class participation is highly recommended. In the case of passing the final exam (i.e. with a grade higher than five), the final grade mix will be based on a final exam grade (50%), a short term paper or pricing project (20%) and problem sets/written case preparations (30%).

Course Outline:
Part 1. Pricing Tactics with Market Power

a. Monopoly.
Pashigian, chapter 9
Nagle, chapters 2 & 3.

b. Demand Estimation
Tellis, “The Price Elasticity of Selective Demand: A Meta-Analysis of Econometric Models of Sales,” Journal of Marketing Research, 25-4, 1988.
Case: G.D. Searle: Equal Low-Calorie Sweetener (A) HBS 9-585-010
Dolan & Simon, chapter 3
Nagle, chapter 13

c. Price Discrimination and Non-linear Pricing
Dolan & Simon, chapter 7.
Pashigian, chapter 12
Wilson (technical material!), chapters 3-5

d. Bundling.
Dolan & Simon, chapter 9
Pashigian, chapter 12
Case: American Repertory Theater HBS 9-580-133

e. Pricing, Quality and the Product Line
Dolan & Simon, chapter 8
Pashigian, chapter 14
Case: Sony Corp.: The Walkman Line HBS 9-95076

f. Time Customization: Pricing Perishable and Durable
Assets and Seasonal Sales
Dolan & Simon, chapters 10-11
Pashigian, chapter 15
Case: ZARA HBS case

g. Promotion and Pricing in the Channel
Nagle & Holden, chapters 10 & 11
Pashigian, chapter 13

Part 2. Strategic Pricing

a. Short-Run and Dynamic Price Competition
Dolan & Simon, chapter 4
Pashigian, chapter10
Nagle & Holden, chapter 6

b. Behavior, Social Influences and Pricing
Nagle & Holden, chapter 4
Becker “A Note on Restaurant Pricing” JPE, 5 (1991): 1109-1116.
Becker “ More on the Social Influences on Pricing,” Mimeo.

c. Auctions
Besanko and Breautigam, chapter 15.

References:
1. Dolan, R. and H. Simon, Power Pricing, The Free Press, New York, 1996.
2. Nagle, T. and R. Holden, The Strategy and Tactics of Pricing, 3rd Edition, Prentice Hall, New Jersey, 2002.
3. Pashigian, B. P., Price Theory and Applications, 2nd Edition, McGraw Hill, New York 1998.
5. Besanko, D. A. and R. B. Beautigan, Microeconomics, An Integrated Approach, John Wiley and Sons, inc., New York 2002.
6. Wilson, Robert B., Nonlinear Pricing, Oxford University Press, 1993.