Class 8: Price Discrimination I

Textbook reading: Kreps, Chapter 8, sections 8.1 and 8.2 through “Terms and Conditions and Other ‘Quality’ Distinctions” (pages 175 to 182). Read the chapter opening carefully; every puzzle listed there gets solved this week. Where Kreps writes MR as a formula with ν(p) in it, that is the Class 7 formula MR = P × (1 + 1/ν) and nothing more.

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