Abstract This case study focuses on the following �rational riddle� raised in a recent popular economics book: Hotels in Britain usually charge per guest while hotels in the US typically charge per room. What is the reason for this difference? We propose a pricing model for extra services...

Abstract Most lectures teach the relationship between the CES, Cobb-Douglas, and Leontief functions using the value of elasticity of substitution, namely, in the discrete object model. This lecture note aims at being a reference for algebraic computations of the Leontief and Cobb-Douglas...

Abstract This article reports on the results of a case study that examines the characteristics of the transaction between a plastic producer firm and its supplier of steel injection mold in order to explore the possible effects of asset specificity on the firm�s choice of the transaction...

Abstract This energetic lecture consist of a paper fight and another exercise to provide background, methodology, and findings from research that has empirically examined competitive dynamics. Foundational to this stream of research are several literatures including game theory and the...

Abstract In many textbooks, an important assumption difference between the standard picture for block pricing and the intuitive discussions on this pricing scheme is often ignored. This practice leads the students to misunderstand this picture as an illustration for price discrimination against...

Abstract A price control policy has several potential effects upon market welfare. These include deadweight loss, surplus transfer from producer to consumer, misallocative cost, and quality degradation. The present article provides accessible pedagogical models with which to incorporate the...

Abstract This experiment helps students to understand the importance of network externalities in technology adoption and the evolution of industries. Students observe the roles of lock-in and critical mass in technology adoption, understand how pricing affects adoption, and see welfare...

Abstract This paper provides a non-technical introduction to a procedure to find Perfect Bayesian equilibria (PBEs) in incomplete information games. Despite the rapidly expanding literature on industrial organization that uses PBE as its main solution concept, most undergraduate and graduate...

The paper presents an intuitive explanation of the Cho and Kreps’ (1987) Intuitive Criterion, and the Banks and Sobel’s (1987) Divinity Criterion (also referred as D1-Criterion). We provide multiple examples in which students can understand, step-by-step, the two main phases involved in these...

This teaching module shows how U.S. antitrust laws are affected by ‘intentional' and ‘evolutionary' visions of socio-economic market processes. The extent of government's role is studied to review whether the U.S. antitrust laws should be strengthened, reformed or repealed. The focus of...