Economic Foundations of Pricing

Go to class
Write Review

Free Online Course: Economic Foundations of Pricing provided by edX is a comprehensive online course, which lasts for 5 weeks long, 3-5 hours a week. The course is taught in English and is free of charge. Economic Foundations of Pricing is taught by Sreelata Jonnalagedda.

Overview
  • Pricing products or services is a challenging decision for many business owners.

    What is a good starting point for sound pricing decisions? This course provides an economic framework that lays the foundation for good pricing decisions. This course delves into the impact of cost, competition, and customer side factors on pricing. The course also goes into the company objectives that shape pricing goals.

    This course also covers the repercussions of the most recent and globally transformative event (i.e., COVID19) on Pricing.

Syllabus
  • Week1 : Economic foundations of Pricing
    1. What is market clearing price?
    2. Understand price setters vs price takers, supply and demand curves.
    3. Covid price increases/decreases/no-change

    Week 2: Fundamentals of Demand or Customer point of view
    1. What is demand?
    2. Price response functions
    3. Revenue maximization
    4. Elasticity

    Week 3: Cost based pricing decisions
    1. Terms: (marginal cost, fixed cost, incremental cost), CM, operating margin, %margin, mark-up
    2. Price optimization
    3. Break-even sales change

    Week 4: Competition and Objectives
    1. Competition based heuristics
    2. Understanding objectives and economic framework

    Week 5: Economics of Multiproduct Pricing
    1. Demand curves and pricing
    2. Price discrimination
    3. Game theory
    4. Auctions