| market power | when it faces a downward-sloping demand curve. |
| markup pricing | a technique that managers can use when they have limited information and resin to believe that price elasticity varies little across the demand curve. |
| cost plus pricing | appears inconsistent with profit maximization since it includes fixed and sunk costs and does not consider consumer demand explicitly. |
| block pricing | a high price is charged for the first block and declining prices for subsequent blocks. block pricing either van be used to extract additional profits from a set of customers with similar demands or ban be used to price discriminate. |
| two-part tariff | the customer pays an up-front fee for the right to buy the product and then pays additional fees for each unit of the product consumed. |
| price discrimination | whenever a firm charges different prices across customers that are not related to differences in production and distribution costs. |
| personalised pricing | extracts the maximum amount each customer is willing to pay for the product. |
| group pricing | results when a firm separates its customers into several groups and sets a different price for each group. |
| menu pricing | all potential customers are given the same menu of options. |
| coupons and rebates | offer price discounts to customers. price sensitive customers are more likely to use coupons and rebates and thus are charged lower effective prices. |
| bundle | bundling products can extract additional profits from a customer base with heterogeneous product demand. |
