Pricing Commonly Owned Complementary Products:
You are a hospital administrator trying to raise capital to
refurbish the hospital. Your local bank is reluctant to lend to you because you
already have a large mortgage on the property on which the hospital complex
lies. But your bankers tells you that they can lend you more if you reduce your
debt by selling your parking lot to some private investors who’ll lease it back
to you for the next 50 years. And you’ll have to renegotiate the price of the
lease every 5 years. What concerns might you have about this sales-and
lease-back contract?
Yield or Revenue Management 2:
Suppose your elasticity of demand for your parking lot
spaces is -0.5, and price is $20 per day. If your MC is zero, and your capacity
at 9 A.M. is 96% full over last month, are you optimizing?
Yield or Revenue Management 3:
Suppose your parking lot has two different consumers who use
it at two different times. Daily commuters use it during the daytime, and
sports fans use it at different times to park at sporting events. Daily
commuter demand is variable, yet stable and known. Demand for sporting events
is uncertain, and depends on the quality of the match, as well as on unpredictable
events, like the weather. How would you price these two events differently?
Inter-temporal Price Discrimination:
Suppose that technophiles are willing to pay $400 now for
the latest iPhone, but only $300 if they have to wait a year. Normal people are
willing to pay $250, and their desire to purchase does not vary with time.
Ignore the time value of money and compute the optima pricing scheme of the
iPhone. Assume that there are equal numbers of each customer type, and that the
MC of the iPhone is $100
