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Some pricing strategies seem to run counter to the interests of the rm, yet when you look more carefully, they make perfect sense. Five examples

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Some pricing strategies seem to run counter to the interests of the rm, yet when you look more carefully, they make perfect sense. Five examples are given below. Pick two of these and write a short analysis of why you think the rms price the way they price. Draw on the lessons of this week to explain your answer. * Please include points related to the economic model of a Monopoly and Price discrimination. . Why is beer so expensive at the ballpark? When I go to a baseball game I spend $50 on a ticket, pay $20 for parking, and buy two $10 beers and two $5 hot dogs. A day of baseball costs me $100. Why not just charge lower prices for concessions and raise the price of a ticket? For example, if I knew beer cost $5 I would be willing to spend at least $60 for the ticket. . Why are there sales after Christmas? The usual explanation is that stores are trying to get rid of excess inventory before the spring season. But can that really be the whole explanation? After all, retailers are really good at predicting demand. Also, inventory costs for many of the things that go on sale are not that high. For example, while some items go out of fashion many of the things on sale after Christmas could be cheaply stored and sold at a later date. 0 Why do you need a coupon to get cheap pizza (or many other things)? Coupons are expensive. It costs the rms distributing coupons money to make them available and it costs consumers time and effort to redeem coupons. And so if the rm wants to cut price either temporarily or permanently, why not just do

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