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This course starts with the basic understanding of classical theory of pricing. It then progresses towards understanding and analysing cost-based pricing heuristics, demand curve analysis, and competition based pricing.
Pricing products or services is a challenging decision for many business owners.
What is a good starting point for sound pricing decisions? This course provides an economic framework that lays the foundation for good pricing decisions. This course delves into the impact of cost, competition, and customer side factors on pricing. The course also goes into the company objectives that shape pricing goals.
This course also covers the repercussions of the most recent and globally transformative event (i.e., COVID19) on Pricing.
Undergraduate level exposure to Economics
By the end of the course, you will be able to:
Week1 : Economic foundations of Pricing
1. What is market clearing price?
2. Understand price setters vs price takers, supply and demand curves.
3. Covid price increases/decreases/no-change
Week 2: Fundamentals of Demand or Customer point of view
1. What is demand?
2. Price response functions
3. Revenue maximization
4. Elasticity
Week 3: Cost based pricing decisions
1. Terms: (marginal cost, fixed cost, incremental cost), CM, operating margin, %margin, mark-up
2. Price optimization
3. Break-even sales change
Week 4: Competition and Objectives
1. Competition based heuristics
2. Understanding objectives and economic framework
Week 5: Economics of Multiproduct Pricing
1. Demand curves and pricing
2. Price discrimination
3. Game theory
4. Auctions
