Term
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Definition
| charging different groups of consumers different prices for the same product |
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Term
| 4 Conditions of Price Discrimination |
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Definition
1. D Curve Must slope Downward
2. At least 2 different consumers with diff price elasticities
3. Charge group different price at low cost
4. Prevent those paying low price from reselling to those paying high price |
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Term
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Definition
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Term
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Definition
Different prices for exact same service
ex. movies, coupons, senior citizens |
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Term
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Definition
Different for somewhat different products
ex. First Class air fare |
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Term
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Definition
Different prices charged for product or service. Price difference is fully accounted for by differences in cost of production.
ex. auto insurance |
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Term
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Definition
| One Firms decisions are very dependent on another firms decisions. Effects demand line |
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Term
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Definition
-Few sellers dominate mrkt
-restricted entry
- Product can be diff or homo
- Mutual interdependence |
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Term
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Definition
1. Economies of Scale
2. High start up costs
3. Control of key resources
4. Legal Restricitions
5. Brand Names |
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Term
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Definition
| Is a group of firms that agree to collude so they act as a monopoly to increase economic profit |
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Term
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Definition
| an agreement among firms in the industry to divide the mkrt and fix the price |
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Term
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Definition
- AC curve
-# firms in cartel
-New entry into industry
-Cheating |
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Term
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Definition
firm sets the price for the rest of the industry to follow
1. violates antitrust laws
2. greater product diff the less effectice price leadership is
3. no guarentee everyone will follow
4. profitable industry attracts new entrants |
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Term
| Standards for employee Career Advancement |
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Definition
Firms- motivated by profit, employees tend to advance on productivity
Gov- Employees evaluated by how they serve the goals of the gov manager |
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Term
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Definition
Firm- People may lose jobs because of job cuts or failures
Gov- Gov programs are seldom curtailed, and cost cutting is dimished. Gov employees have substantial job security |
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Term
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Definition
Firm- People may lose jobs because of job cuts or failures
Gov- Gov programs are seldom curtailed, and cost cutting is dimished. Gov employees have substantial job security |
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Term
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Definition
| whats best for a player assuming the other player makes one practicular decision |
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Term
| Players dominant strategy |
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Definition
| players best choice is the same no matter what the other player does |
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Term
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Definition
| payoff block from which neither can more to improve the player |
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Term
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Definition
| Sum of benefit is greatest without either party getting clobbered |
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Term
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Definition
| in any given round you did whatever your opponent did in the previous round |
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Term
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Definition
| each player has a chance to establish a reputation for cooperation and thereby encourage players to do the same |
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