Now extend the two-period markdown model in Section 12.1.1 to the case where customers have a lower

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Now extend the two-period markdown model in Section 12.1.1 to the case where customers have a lower willingness to pay for the good in the second period. Specifically, assume that each customer’s willingness to pay in the second period is 75%

of her willingness to pay in the first period. All other assumptions remain the same.

a. What is the optimal price and corresponding total revenue for the seller, assuming he can charge only a single price in both periods?

b. What are the optimal prices and corresponding total revenue, assuming he can charge different prices in the two periods?

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Pricing And Revenue Optimization

ISBN: 9781503610002

2nd Edition

Authors: Robert L. Phillips

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Question Posted: Sep 19, 2024 08:01 PM

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Now extend the two-period markdown model in Section 12.1.1 to the case where customers have a lower

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Pricing And Revenue Optimization

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