Pricing Policies

2.5 credits

This course prepares future managers to analyze the environment in which their firm operates in order to arrive at an appropriate pricing policy for their products or services. Topics include (i) relevant costs (i.e., which costs are relevant for pricing decisions), (ii) elasticity of demand, and (iii) market segmentation (e.g., through the offering of a product line, or by means of bundling, tying, menus of two-part tariffs, quantity discounts, and other direct and indirect means of price discrimination). The course will also cover essential pricing analytic tools such as break-even analysis and economic value analysis, and it will provide a solid introduction into the pitfalls of pricing in a competitive environment and how to anticipate competitor responses. Lastly, the course will cover the legal aspects of pricing as appropriate.