Ramifications of price discrimination
Course:- Managerial Accounting
Reference No.:- EM1348183

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Can you aid me out with following questions:

1. Thomas Selling, an expert on nuclear strategy and arms control, examined in his book The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960), " The power to constrain the adversary depends on the power to bind oneself." Describe this statement using the concept of strategic commitment.

2. In the 2000 US Presidential contest, Al Gore was advised by his strategists to wait for George W. Bush to announce his vice-presidential running mate before making his own decision on a running mate. Under what circumstances would Gore be better off giving Bush a head start on putting together his presidential ticket? What kind of strategic situation is this?

3. Price discrimination sounds like a very socially "bad" thing. Can you think of any reasons why price discrimination could be viewed as a socially "good" thing? Explain.

4. "Declining block pricing is a crude form of perfect price discrimination." In what sense is this statement correct? In what important way is it wrong?

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