Class 10: Channels of Distribution and Double Marginalization
Textbook reading: Kreps, Chapter 9. Read all of it, but treat the algebra in section 9.1 as something to check rather than reproduce: every MR = MC step in the chapter is a straight-line demand, so Lab 4’s halfway rule (the best price sits halfway between marginal cost and the price at which demand hits zero) gets every number. Skip the derivative on page 207. A warning about Table 9.1 on page 210: several of its entries do not match the text’s own formulas, and Q30 has you find out which.