Firms as Price Setters
Module III
Materials are posted as we go. See the Schedule for dates and assessments.
Lecture 6: What does it cost to make a car? Scale and the cost of production
Reading: 7.3–7.4
Lecture 7: Who can get away with raising prices? Demand and elasticity
Reading: 7.5
Lecture 8: Steak, ramen, and recessions: Other elasticities
Lecture 9: Sweet spot: Choosing the price and quantity that maximize profit
Reading: 7.6
Lecture 10: The surplus from a sale and who captures it
Reading: 7.7
Lecture 11: Leaving gains on the table: Pareto efficiency and deadweight loss
Reading: 7.7
Lecture 12: Standing out from the crowd: Market power, differentiation, and natural monopoly
Reading: 7.8–7.9; 7.11
Materials posted closer to the date.
Lecture 13: Price wars: Strategic price setting and competition policy
Reading: 7.10; 4.2–4.3; 7.12
Materials posted closer to the date.