Managerial Economics & Business

Strategy
Chapter 11
Pricing Strategies for Firms with Market Power

McGraw-Hill/Irwin
Michael R. Baye, Managerial Economics and
Business Strategy
 11-2

Overview
I. Basic Pricing Strategies
 Monopoly & Monopolistic Competition

II. Extracting Consumer Surplus

 Price Discrimination  Two-Part Pricing
 Block Pricing  Commodity Bundling

III. Pricing for Special Cost and Demand Structures

 Peak-Load Pricing  Transfer Pricing
 Cross Subsidies

IV. Pricing in Markets with Intense Price Competition

 Price Matching  Randomized Pricing
 Brand Loyalty
 11-3

STRATEGI DASAR
 P = 10 - 2Q
TC = 2Q
 If the firm must charge a single price to all consumers, the
profit-maximizing price is obtained by setting MR = MC.
 10 - 4Q = 2, so Q* = 2.
 P* = 10 - 2(2) = 6.
 Profits = (6)(2) - 2(2) = $8.
 11-4
A Simple Markup Rule
A Simple Pricing Rule for Monopoly and Monopolistic Competition
 Suppose the elasticity of demand for the firm’s product is EF.
 Since MR = P[1 + EF]/ EF.
 The Profit Maximizing Price is obtained  setting : MR = MC
P[1 + EF]/ EF = MC
and simplifying yields this simple pricing formula: P = [EF/(1+ EF)]  MC.

So, P yang memaksimalkan laba : P = K x MC; K = [EF/(1+ EF)]

Markup ?

Contoh : Epx = - 4,1, So K = -4,1/(1-4,1)= 1,32

P yang memax.kan laba : P = 1,32MC
 The optimal price is a simple markup over relevant costs!
 More elastic the demand, lower markup.
 Less elastic the demand, higher markup.
Mis : Ep = -3, Marginal Cost = Rp 10.000
Berapa penetapan harga “markup Pricing” ?

Jawab :
 11-6

An Example
 Elasticity of demand for Kodak film is -2.
 P = [EF/(1+ EF)]  MC
 P = [-2/(1 - 2)]  MC
 P = 2  MC
 Price is twice marginal cost.
 Fifty percent of Kodak’s price is margin above manufacturing costs.
 11-7

Extracting Consumer Surplus:

Moving From Single Price Markets
 Most models examined to this point involve a “single” equilibrium
price.
 In reality, there are many different prices being charged in the market.
 Price discrimination is the practice of charging different
prices to consumer for the same good to achieve higher prices.
 The three basic forms of price discrimination are:
 First-degree (or perfect) price discrimination.
 Second-degree price discrimination.
 Third-degree price discrimiation.
 11-8

First-Degree or Perfect
Price Discrimination

 Practice of charging each consumer the maximum amount he

or she will pay for each incremental unit.
 Permits a firm to extract all surplus from consumers.
 11-9

Second-Degree
Price Discrimination
 The practice of posting a discrete schedule of
declining prices for different quantities.
 Eliminates the information constraint present in first-
degree price discrimination.
 Example: Electric utilities
 11-10

Third-Degree Price Discrimination

 The practice of charging different groups of consumers
different prices for the same product.
 Group must have observable characteristics for third-
degree price discrimination to work.
 Examples include student discounts, senior citizen’s
discounts, regional & international pricing.
 11-11

Implementing Third-Degree Price

Discrimination
 Suppose the total demand for a product is
comprised of two groups with different
elasticities, E1 < E2.
 Notice that group 1 is more price sensitive than
group 2.
 Profit-maximizing prices?
 P1 = [E1/(1+ E1)]  MC
 P2 = [E2/(1+ E2)]  MC
 11-12
An Example
 Suppose the elasticity of demand for Kodak film in
the US is EU = -1.5, and the elasticity of demand in
Japan is EJ = -2.5.
 Marginal cost of manufacturing film is $3.
 PU = [EU/(1+ EU)]  MC = [-1.5/(1 - 1.5)]  $3 = $9
 PJ = [EJ/(1+ EJ)]  MC = [-2.5/(1 - 2.5)]  $3 = $5
 Kodak’s optimal third-degree pricing strategy is to
charge a higher price in the US, where demand is
less elastic.
Gogo Food Company menghasilkan satu jenis paket makanan malam
beku yang dijual langsung kepada konsumen dan restoran. Fungsi
permintaan untuk produk tersebut bagi konsumen dan bagi restoran
secara berturut-turut adalah :
Q1 = 160 – 10 P1 dan Q2 = 200 – 20 P2
Fungsi biaya total perusahaan Gogo adalah : TC = 120 + 4 Q

Pertanyaan :
a. Berapa tingkat output terbaik perusahaan dan bagaimana perusahaan harus
mendistribusikan penjualan dalam setiap pasar agar dapat memaksimumkan
laba totalnya dengan menggunakan diskriminasi harga ?
b. Berapakah harga dan total pendapatan perusahaan di setiap pasar dengan
diskriminasi harga tersebut ?
c. Berapakah laba total dengan diskriminasi harga tersebut ?
d. Analisa pula jika perusahaan tidak melakukan diskriminasi harga, berapa
output, harga, pendapatan total, dan laba total yang dapat diperoleh ?
PT Mayasari adalah sebuah perusahaan industri manufaktur, memproduksi suku cadang
Komputer yang dijual dalam pasar Internasional (pasar 1) dan pasar domestik (pasar 2).
PT Mayasari merupakan perusahaan Monopoli dalam pasar domestik, sedangkan dalam
Pasar internasional merupakan perusahaan persaingan monopolistik yang sangat kompe-
Titif. Fungsi permintaan produk dalam pasar Internasional dan pasar domestik adalah
Sebagai berikut :
Pasar Internasional : Q1 = 100 – 2P1
Pasar Domestik : Q2 = 50 – 0,5P2
Q1 dan Q2 adalah kuantitas permintaan suku cadang komputer dalam pasar internsional
Dan pasar domestik yang diukur dalam satuan ribu unit, sedangkan PI dan P2 adalah
Harga jual produk dalam pasar internasional dan pasar domestik dalam satuan dolar
Per unit.
Perdugaan terhadap biaya produksi total menggunakan model regresi kuadratik meng-
Hasilkan persamaan berikut : TC = 900 + 10Q + 0,1Q2, dimana TC adalah biaya produksi
Total yang diukur dalam satuan ribu unit. Bagaimana keputusan yang harus diambil
Oleh manajer PT Mayasari agar memaksimumkan keuntungan ekonomis, jika :
a. Menggunakan diskriminasi harga ?
b. Tidak menggunakan diskriminasi harga ?