Participation and Incentive Compatibility Constraints in Menu Pricing

Описание: Hi everyone, in this video I discuss participation and incentive compatability constraints when a firm engages in menu pricing.

0:00 Introduction
0:50 Participation (Reservation) Constraints
1:50 Incentive Compatability Constraints
4:11 Profit Maximising Prices
5:29 Example
8:52 Discussing why the solutions are equalities (points of indifference)
12:30 Why P(LQ)= WTP_L(LQ)

Other Videos that Might Help

An Introduction to Price Discrimination:    • An Introduction to Price Discrimination as...  
First Degree PD:    • First Degree Price Discrimination  
First Degree PD, Practice Problem:    • Practice Problem: Perfect (1st Degree) Pri...  
First Degree PD, 2 Part Tariff:    • Practice Problem - Two Part Tariff - First...  
First Degree PD, 2 Part Tariff, Practice Problem:    • Practice Problem - Two Part Tariff - First...  
First Degree PD, Bundling:    • Practice Problem: Bundling as First Degree...  
Second Degree Price Discrimination:    • Second Degree Price Discrimination as Menu...  
Participation and Incentive Compatibility Constraints:    • Participation and Incentive Compatibility ...  
Second Degree Price Discrimination, Practice Problem:    • Practice Problem Second Degree Price Discr...