ECON 171 UCLA

Eco 171 - Industrial Organization First Midterm Exam Instructions Name: Section: There are 6 short questions and 2 problems. Short questions are worth a total of 40 points and the problems a total of 60 points. Answer in the space provided (no need

Eco 171 - Industrial Organization Second Midterm Exam Instructions Name: Section: There are 6 short questions and 2 problems, each worth 1/3 of the total points. Answer in the space provided (no need to use it all.) If necessary use the back of the

Product characteristics and demand Industrial Organization Hugo Hopenhayn May 8, 2008 Hugo Hopenhayn () Product characteristics and demand May 8, 2008 1 / 11 Brand preference N consumers i = 1, ., N and M brands j = 1, ., M Consumers buy only

Monopoly: Linear pricing Econ 171 1 Overview Marginal revenue Connection to elasticity and markup rule Welfare: deadweight loss Price discrimination: some general principles Group pricing - third degree price discrimination Price discrimin

Monopoly and Quality Welfare analysis Quality, profits and welfare Higher quality is valued by consumers How much of this extra surplus can the monopolist extract? If not all, monopoly may under-provide quality Surprisingly, the opposite could als