Class 9: Price Discrimination II

Textbook reading: Kreps, Chapter 8, from “Nonlinear pricing” (page 182) to the end, including sections 8.3, 8.4, and 8.5. Also read Problem 8.5 on pages 193 to 194 carefully, through the three consumers’ value tables; Q25 and Lab 5 are built on it. Kreps says the Disneyland example needs R or Excel; in class we do it by counting squares.

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