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14-4 Inter-temporal Price Discrimination Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to...

14-4 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 optimal pricing scheme
of the iPhone. Assume that there are equal numbers of each customer type, and that the MC of
the iPhone is $100.

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Economics-8083201.doc

14-4 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...

Sign up to view the full answer

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