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managerial economics

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Inter-temporal Price Discrimination.
Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year. Normal people are willing to pay $250, and their desire to purchase does not vary with time. Ignore the time value of money and compute the optimal pricing scheme of the iPhone. Assume that there are equal numbers of each customer type, and that the MC of the iPhone is $100

  • managerial economics -

    You sell 1/3 of the world an iphone at $400. 1/3 a year later for $300.00 and after 1/3 of the world at $250. Those people would not buy unless price is dropped so you get your initial huge profit on the coustomers that can not wait then continue to drop price until all consumers that want your product have purchased it at the price they are willing to spend. That will have the optimal purchases of the product.

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